Rubicon Organics, Inc. · TSXV:ROMJ
Rubicon Organics — Investor Presentation (January 2021)
24 slides from Rubicon Organics's investor presentation, January 2021
Slide 1: What the Market Needs, Right Now – A Clear Path to Profitability
TSXV: ROMJ | OTCQX: ROMJF WHAT THE MARKET NEEDS, RIGHT NOW – A CLEAR PATH TO PROFITABILITY Q1 2021
Slide 2: Disclaimer
Disclaimer This presentation is not, and under no circumstances is to be construed as, a prospectus, or advertisement or a public offering of securities of Rubicon Organics Inc. (“Rubicon Organics" or the "Company"). This presentation contains forward-looking statements within the meaning of applica
Slide 3: Mission, Vision, Values
MISSION | grow the best cannabis on earth, for the earth VISION | be the global brand leader in organic cannabis VALUES | growth, sustainability, freedom, impact |3 TM
Slide 4: Rubicon Organics at a Glance
Rubicon Organics at a Glance Positive 1 of only 6 Adj. EBITDA Organic Certified LPs in Canada1 Monthly by YE 2020 125,000 ft2 11,000 kg Hybrid Greenhouse Annual Production in Delta, BC Capacity 6 90% Provinces Selling Coverage of the Rubicon Product Addressable Canadian Market2 World Class $177 mill
Slide 5: Highly Differentiated Offering
Highly Differentiated Offering Organic Certified + Super-Premium Cannabis is RARE ▪ Rubicon is 1 of only 6 organic certified producers in Canada1, and even fewer are focused in the super- premium category ▪ Rubicon is 1 of only 2 both super premium and organic certified producers2 ▪ There is current
Slide 6: Our Obsession With Quality
Our Obsession With Quality Organic matters to our customers ▪ Better experience Brand Positioning − Higher terpene and cannabinoid levels − Toxin-free and environmentally friendly ▪ Organic certified associated with health and wellness category ▪ “The Sustainable Shopper”: Price Millennials are will
Slide 7: Sustainability Drives Quality
Sustainability Drives Quality Producing terpene rich flower through proprietary living soil blends created in-house Certified organic by Cultivating for the environment: Fraser Valley Organic Producers Association • Hand-mixed living soil with raw agricultural inputs: Douglas Fir bark, kelp, and fis
Slide 8: A Consumer Packaged Goods Approach to Innovation
A Consumer Packaged Goods Approach to Innovation Leading a new organic cannabis market by aligning products with consumer insights: • Led by a purpose-built team of experienced international CPG brand builders CPG operational excellence: business leadership, supply chain, financial, sales and market
Slide 9: This is How We Innovate
This is How We Innovate Brand: SIMPLY BARE™ ORGANIC Brand: LAB THEORY™ Best Products: super-premium flower, solvent-less extracts (e.g., diamonds, caviar, live rosin) Better Brands: Flower and concentrate brands coming soon Products: tier 2 flower, concentrates, vapes Brands: Flower and 2.0 brands c
Slide 10: Aligning Differentiated Products With Specific Consumer Insights
Aligning Differentiated Products With Specific Consumer Insights CPG innovation is about aligning concept, packaging and contents Content Premium blended 10-year old whiskey Super-premium organic Cannabis Concept Rarity Aged Rare and terpene rich Dried flower Heavy glass, Standard glass, Packaging R
Slide 11: Simply Bare Organic
Simply BareTM Organic ▪ Launched in December 2019 to rave reviews ▪ Rare combination of Organic Certified and Premium ▪ Simply BareTM Organic sold-out on the BC cannabis website within 1 week of delivery ▪ $5.00 gross margin/gram1 Reviews: Rubicon knocked it out of the park with this one. Hands down
Slide 12: A Premier Product Platform
A Premier Product Platform BC ORGANIC BC ORGANIC BC ORGANIC BC ORGANIC BC ORGANIC BLUE DREAM CREEK CONGO SOUR CKS SFV OG KUSH APPLE TOFFEE 3.5g Pre-Roll Best-selling NA Rare, landrace- High potency, Classic Cali OG Sour Apples and 3 x 0.5g strain derived genetics sweet & sour Kush Crème Brulée DIAMO
Slide 13: Growth Strategy
RUBICON™ ORGANICS Growth Strategy RQ ORGANICS
Slide 14: Rapid Geographic Expansion
Rapid Geographic Expansion ▪ Simply BareTM Organic is currently available in Ontario, British Columbia, Alberta, Saskatchewan and Manitoba ▪ Lab TheoryTM is currently available in British Columbia ▪ 1964TM is currently available in Quebec |14
Slide 15: International Route-to-Market Established
International Route-to-Market Established ▪ Multi-year product supply agreement in place with Canacur GmbH, a German cannabis distributor − Provides access to the fast-growing German medical market at attractive gross margins ▪ Completion of EU-GMP Certification1 and first export expected in Q1 2021
Slide 16: Perfect Size Facility to Excel in the Current Market
Perfect Size Facility to Lowest Break-Even Sales Volumes1 Excel in the Current Market 194,269 kg A Story of the Hare & the Tortoise… Our Peers’ Approach: ▪ Built over-sized facilities, some of which have shuttered 104,488 kg ▪ Significant operating costs relative to revenues Rubicon has the Lowest B
Slide 17: Innovation Pipeline
Innovation Pipeline H1 2021: H1 2021: Q2 2021: Vapes New strains Simply Bare™ Simply Bare™ solventless Q1 2021: H1 2021: H1 2021: Simply Bare™ 7g jars Wildflower Topicals Lab Theory™ national roll-out |17
Slide 18: Delivering On Our Commitments
Delivering On Our Commitments Key Milestones ✓ 125,000 sq. ft. Delta Greenhouse Fully Planted Mar 2020 ✓ Launch Pilot Scale Medical Sales in Canada June 2020 ✓ Launch Pre-Rolls in Canada July 2020 ✓ Up-List onto TSX Venture Exchange Sept 2020 ✓ Pilot-Scale Harvest from Outdoor Grow in Delta Sept 202
Slide 19: The Right Team – Cannabis and CPG Expertise
The Right Team – Cannabis and CPG Expertise Management Independent Directors Jesse McConnell, M.A. Richard Denton Bryan Disher, CPA, CA, ICD.D CEO & Director Director of Supply Innovation Director (Chair) ▪ 20+ years in the Cannabis Industry ▪ 30+ years global CPG ▪ 40+ years in Finance ▪ Co-Founder
Slide 20: Key Financial Milestones
Key Financial Milestones ▪ Positive monthly EBITDA before YE 2020 ▪ Operating cash flow H1 2021 ▪ Gross profit as % of net sales > 50% The Value We Create |20 TM
Slide 21: Market Information
Market Information Analyst Coverage Rubicon Overview Firm Analyst TSXV: ROMJ Ticker OTCQX: ROMJF John Chu Share Price (as of Jan 7, 2021) C$3.59 / share Market Capitalization C$177 million Greg McLeish 52-Week Low / High C$1.50 - C$4.40 / share Neal Gilmer As at January 2021 # of Shares % Founders &
Slide 22: Investment Highlights
Investment Highlights ▪ High quality, super premium product from a mid-sized facility Perfect Size Facility ▪ Rubicon’s 125,000 sq. ft. greenhouse is fully planted ▪ 200kg/month break-even run rate at low sales volumes Differentiated ▪ Rubicon is 1 of only 6 LPs in Canada with an organic certificati
Slide 23: Global brand leadership in organic cannabis products
CPG innovation Leveraging our unique Operational expertise to design and cultivation IP to grow excellence: business bring high margin superior quality organic, + premium products and + leadership, supply sustainable, terpene chain, financial, sales brands to market rich flower and marketing around
Slide 24: Contact Us
CONTACT US Investor Relations IR@rubiconorganics.com +1-437-929-1964 Please visit us at: www.rubiconorganics.com TM Rubicon Organics Inc. 505 – 744 W. Hastings Street Vancouver, BC V6C 1A5 TSXV: ROMJ | OTCQX: ROMJF
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