Rubicon Organics Secures $4 million in Financing to Support Strategic Growth Initiatives
Executive Summary
- Rubicon Organics entered into Credit Agreements to borrow up to $4 million from Community Savings Credit Union.
- The financing consists of a $3 million Capital Loan (5‑year term, 10‑year amortization, 6.79% interest) and a $1 million Line of Credit (interest at CSCU Base Rate + 5.50%).
- Proceeds will fund margin‑accretive projects at the Pacifica and Cascadia facilities, supporting capacity expansion and growth initiatives.
Key Details
- Loan Structure:
- $3,000,000 Capital Loan – 5‑year term, amortization over 10 years, interest rate 6.79% per annum.
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$1,000,000 Line of Credit – variable interest at CSCU Basic Lending Rate + 5.50%, calculated monthly.
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Security: Both facilities are secured against the Cascadia Facility.
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Use of Proceeds: Funding for margin‑accretive projects at Rubicon’s Pacifica (Delta, BC) and Cascadia (Hope, BC) production sites, intended to expand capacity by over 40% and support domestic/export growth.
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Closing Timeline: Expected finalization within the next month from the announcement date.
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Strategic Rationale: Provides capital flexibility to execute growth plans while maintaining a strong balance sheet, as noted by CFO Glen Ibbott.
Notable Quotes
“This financing provides us with capital and flexibility to execute on our growth plans while maintaining a strong balance sheet,” – Glen Ibbott, CFO.