Rubicon obtains $4-million financing from credit union

Executive Summary

• Rubicon Organics Inc. has secured up to $4 million in new credit agreements from Community Savings Credit Union to support strategic growth and margin-accretive projects.
• The financing consists of a $3.0 million capital loan and a $1.0 million line of credit, secured against the company's Cascadia facility.
• Funds will be utilized to finance projects at the Pacifica and Cascadia facilities, with the agreements expected to be finalized within the next month.

Key Details

• Total Financing Amount: Up to $4 million aggregate.
• Lender: Community Savings Credit Union (CSCU).
• Security: Secured against the Cascadia facility.
• Component 1 (Capital Loan):
  • Amount: $3.0 million.
  • Term: 5 years.
  • Amortization Period: 10 years.
  • Interest Rate: 6.79% per annum.
• Component 2 (Line of Credit):
  • Amount: $1.0 million.
  • Interest Rate: CSCU basic lending rate plus 5.50%, calculated on a monthly basis.
• Use of Proceeds: To finance margin-accretive projects at the Pacifica (Delta, B.C.) and Cascadia (Hope, B.C.) facilities.
• Timeline: Agreements expected to be finalized within the next month.
• Operational Context: The Cascadia facility acquisition and licensing are expected to expand production capacity by over 40%.

Notable Quotes

• "This financing provides us with capital and flexibility to execute on our growth plans while maintaining a strong balance sheet," said Glen Ibbott, chief financial officer. "We appreciate the continued support of our financial partners and their confidence in our vision."