Rubicon Organics, Inc. · TSXV:ROMJ
Rubicon Organics — Investor Presentation (July 2024)
32 slides from Rubicon Organics's investor presentation, July 2024
Slide 1: Canada's Leading Premium House of Brands
Canada’s Leading Premium House of Brands Driven by Best-In-Class Organic Cultivation & Proprietary Intellectual Property TSXV: ROMJ OTCQX: ROMJF Investor Presentation, July 2024
Slide 2: Disclaimer
Disclaimer This presentation is not, and under no circumstances is to be construed as, a assumes no obligation to update any forward-looking statement, even if new licensing, sale and storage of cannabis products are affected by extensive laws, prospectus, or advertisement or a public offering of se
Slide 3: Thesis
Thesis Rubicon Organics' proprietary organic cultivation intellectual propriety, innovative product development, and operational excellence deliver premium quality and a strong brand promise with its 3 flagship brands: Simply Bare Organic, 1964 Supply Co. & Wildflower . Rubicon Organics' brands are
Slide 4: Rubicon Organics Growth Opportunity & Unique Positioning
Rubicon Organics Growth Opportunity & Unique Positioning Canada’s strongest premium House of Brands is a proven launchpad for new products Growth Product launches such as 1964 Supply Co. vape in 2024 to 40% : national distribution under two months & 2023 live rosin edibles to #1 premium edibles
Slide 5: Corporate Overview
Corporate Overview We are a Leader in the Canadian Cannabis Sector Producing Highlights: Premium & Super-Premium Branded Cannabis Products Proudly delivering BC premium & organic certified cannabis nationally #1 Premium LP 1 3 flagship brands, prominent brand recognition in their segments in Can
Slide 6: 1H 2024 Highlights: #1 Premium LP In Canada
1H 2024 Highlights #1 Premium LP In Canada 1 1.8% 6.5% $8.9 million Market Share2 Premium Market Net Revenue Share1 Q1’ 24 30% $(0.4) million Premium Edibles Adjusted EBITDA5 Market Share4 Q1’ 24 28% $4.0 million Topical market share3 Operating cash flow for 12 mth to Q1’ 24 1. Hifyre data for premi
Slide 7: 2023 Our Accomplishments
2023 Our Accomplishments $4.4 million $40.1 million $5.1 million (+130%) (+13%) (+160%) Adjusted EBITDA1 for Net Revenue for 12 mo. Operating cash flow 12 mo. to Q4’23 ended Q4’23 for 12 mo. to Q4’23 2023 Cannabis Expansion Company of the Secured co- manufacturer & Year2 contract grow partners “Most
Slide 8: Growth: Canadian Cannabis Market Grew 12% to $5 Billion+
Growth: Canadian Cannabis Market Grew 12% to $5 Billion+ 2023 Rubicon’s House of Brands has consistently demonstrated the ability to successfully launch new products and grow revenue 2024 entered high-growth vape category Vape 1,000+ points of distribution in first two months across Alberta, BC
Slide 9: 2024 Vape Launch
2024 Vape Launch Introducing – 1964 Supply Co FSE Resin Vapes Full Spectrum Extracts (FSE) provide more complex, nuanced flavor profile and a smoother consumption experience Launched with two best selling cultivars: Comatose & Blue Dream with GLTO #41 launching in August (expect five SKUs in v m
Slide 10: Vape Market Growth
Vape Market Growth Market Share by Category (in $ Sales) by Quarter Beverages Concentrates Edibles Flower Oils Pre-Rolls Topicals Vapes H1 2024 vs 2023 2023 vs 2022 Vapes Growth +15% Vapes Growth +18% 2022 vs 2021 Vapes Growth +29% $210.4M $223.8M $214.8M $216.5M $195.3M $172.7M $184.3M $186.8M $164
Slide 11: Competitive Advantages driven by Unique Intellectual Property
World leading certified organic cultivation Competitive Advantages Genetics leadership with quarterly new strain drops driven by Unique Institutionalized systems bringing CPG Intellectual rigour to cannabis cultivation & operations Property
Slide 12: Competitive Advantage in Proprietary Intellectual Property
Competitive Advantage in Proprietary Intellectual Property driving House of Brands Leadership 100%-owned 20-acre property in Delta, British Columbia Experienced operations team rooted in legacy market Proprietary, organic certified living soil cultivation delivering terpene rich flavors to consumers
Slide 13: Genetics Leadership Intrigues Premium Consumer
Genetics Leadership Intrigues Premium Consumer Super-Premium Premium 2023 2024 2023 2024 High Society Power Mintz • Super Lemon Haze • GG#4 Oreoz Zookies • Gelato #41 • Stinky Pinky White Rainbow Fruit Loopz • Death Bubba • LA Kush Cake Cleopatra Hollywood Mac • Blue Dream • Sour Tan
Slide 14: Canada's Premium House of Brands
Two of top three Canada’s most recommended Canada’s brands1 Premium Canada’s #1 House of Topical with over 28% market share2 Brands Highlights Best Company of the Year 2023 – KIND Awards 1. Brightfield Group Canada Budtender Survey 2023 2. Hifyre data for topical products covering six months ended J
Slide 15: #1 Premium Market Share
1 # Premium Market Share1 1H 2024 Category Ranking Market Share Premium Flower & Pre-rolls2 #2 6.8% Premium Edibles3 #1 26.8% Premium Concentrates4 #3 8.8% Topicals5 #1 28.0% Cement Shoes 1. Hifyre data for premium products covering flower, pre-rolled products, concentrates, edibles, topicals, and v
Slide 16: Super-Premium
SUPER-PREMIUM Built to delight discerning consumer searching for the highest quality, newest and most flavorful products. Proprietary organic certified, living soil providing terpene rich experience Hand trimmed and hand packed Exotic flavour forward strains with regular new drops
Slide 17: Premium
PREMIUM Designed to recruit legacy consumers by offering classic organic cultivars, 1964 is one of Canada’s fastest growing cannabis brands. Proprietary organic certified, living soil providing terpene rich experience Brand platform for growth: 2023 live rosin edibles launch to #1 premium edible
Slide 18: Cannabis for Wellness
CANNABIS FOR WELLNESS Created to inspire holistic wellness by offering the best performing CBD products that consumers can integrate in their daily routine. #1 Topical Brand in Canada with 28% Market Share* Brand platform for wellness Designed to address need states: Sleep, Pain Relief, Anxiet
Slide 19: Building Brands from Proprietary IP & Consistent Execution
Building Brands from Proprietary IP & Consistent Execution Brand awareness and Aim to become the leading foundation set for expansion premium cannabis company with more profitable product Winner AR Cannabis in Canada formats Cup 2023 “Best Gas” Simply Bare - Well-positioned for growth Passionately d
Slide 20: Financial Discipline
Growth capital on hand for investment H2 2024 mortgage re-financing expected to provide long-term stability Financial at agricultural mortgage rates Discipline Operating cost discipline One of handful of LP’s generating Operating Cashflow & AEBITDA
Slide 21: Q1 2024 Rolling 12-month Financial Results
Q1 2024 Rolling 12-month Financial Results Complete brand portfolio launch and market expansion providing growth and positive gross profit. $41.6 M $41.1 M $40.1 M $40.2 M $39.2 M Rolling 12-month basis: +3% Revenue growth (8)% $14.5 M $16.3 M $15.4 M $14.1 M $13.3 M Gross Profit before FV adjustmen
Slide 22: 2023 Financial Results Select Financial Metrics
2023 Financial Results Select Financial Metrics (C$ ‘000’s) Poised for Significant Adjusted EBITDA1 Growth Operating Leverage: Increasing Revenues Over a Fixed Cost Base For the 12 months ended in Q4 2023, the Company 2021 2022 2023 achieved Adjusted EBITDA1 of $4.4M One of only a handful of LPs t
Slide 23: Canadian Market: Past, Present & Future
Canadian Market: Past, Present & Future Legislation (2018 to 2024) Current State 2-5 Years Cannabis quality Poor Stabilization Improved Product Portfolios Scattergun approach Provincial boards tightening CPG portfolio management offerings Provincial Distributors List products offered b
Slide 24: Canadian Cannabis Industry Today & Our Right to Win
Canadian Cannabis Industry Today & Our Right to Win Canadian Cannabis Canadian Cannabis Rubicon’s Market Companies Opportunity Legal market: Struggling to operationally execute Market is Growing • Over $5.0 billion1 Over-levered with high fixed cost base • 15.9% Market growth to February 20243, Almo
Slide 25: Rubicon Organics Unique Positioning
Rubicon Organics Unique Positioning Craft Premium Other Premium: Large Canadian Companies Public & Private Operators Cannabis Companies Intellectual No No No Property Certified Organic Cultivation In-House Scaled No No Cultivation Small scale Purchase Majority Annual Production Externally Capa
Slide 26: Rubicon Organics Valuation Opportunity
Rubicon Organics Valuation Opportunity 2024 EV/Revenue by Sector Consumer Brand Valuation re- 6 Quality Loyalty rating to meets price analogous 5 industries as their Brands 4.8 brands become 4 Emerge established & 3.9 4.2 clear winners 3 emerge 2 2.0 1 0.7 - ROMJ Large Cdn LP's Alcohol Soft Beverage
Slide 27: Market Information
Market Information 56.2M 43.5% As at June 30, 2024 # of Shares % Common shares of common shares outstanding outstanding hold high alignment, Management & Insiders 24,467,364 43.5% management and insiders Tight share structure Public Float 31,740,963 56.5% Consistent insider share purchases Total Out
Slide 28: Leadership Team / Independent Directors
Leadership Team Independent Directors Margaret Brodie, CPA, CA Melanie Ramsey John Pigott Len Boggio Chief Executive Officer & Director Chief Commercial Officer Chair Director 20+ years in finance 20+ years in brand 35+ years in food and beverage 40+ years as auditor, advisor, Over 8 years in cannab
Slide 29: Environmental, Social & Governance Leadership
Environmental, Social & Governance Leadership is Core to Executing our Strategy A few highlights from our 2022 ESG Report: 1st Cannabis Producer in the World to issue an ESG Report and 64% Local hiring: continuing of our workforce live within the local community of our Delta greenhouse We believe ES
Slide 30: Company History & Key Milestones Delivered
Company History & Key Milestones Delivered CONSISTENT EXECUTION 2019 - 2021 2022 2023 2024 Q 2 Q 1 Obtain Sales and Cultivation Launch 1964 brand nationally Launch Infused Cannabis Edibles Appointment of CEO/CFO Licenses Cultivate, Delta Facility J U N E A P R I L Q 2 Initial crops planted and Exten
Slide 31: Mission Vision Values
MISSION VISION VALUES Grow the best cannabis Be the global brand leader Growth on earth, for the earth in organic cannabis Sustainability Freedom Impact
Slide 32: Contact Us
CONTACT US Investor Relations ir@rubiconorganics.com www.rubiconorganics.com Rubicon Organics Inc. +1-437-929-1964 505 – 744 W. Hastings Street Vancouver, BC V6C 1A5 TSXV: ROMJ | OTCQX: ROMJF