Ms. Margaret Brodie reports

RUBICON ORGANICS PROVIDES CORPORATE AND OPERATIONAL UPDATE

Rubicon Organics Inc. has provided a corporate and operational update for the period ending Aug. 31, 2022.

Corporate update

The company is pleased to reiterate its financial guidance from Aug. 15, 2022, with its current expectation to be operating cash flow positive and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) profitable in fiscal 2022. As previously reported, the company achieved positive adjusted EBITDA in the three months ended June 30, 2022. The company believes that its increased product quality and brand portfolio has positioned Rubicon to deliver on its commitments and win in the premium cannabis market in Canada.

"Every product in Rubicon Organics portfolio delivers positive gross profit, and our financial discipline as well as cost saving initiatives, such as the BC Hydro power upgrade, are driving us to our first full-year of adjusted EBITDA profitability," said Margaret Brodie, chief financial officer.

In addition, the board of directors of the company has now begun its search of internal and external candidates for a chief executive officer successor who can lead the company in driving forward its vision to be the global brand leader in premium organic cannabis.

Operational update

Delta facility power upgrade

The company's fully licensed 125,000-square-foot glass-roofed facility in Delta, B.C., has been successfully connected to the BC Hydro power grid. This power grid connection to the Delta facility eliminates the need for the daily operation of natural gas generators, reduces the company's operating costs, and further contributes to one of the company's environmental, social and governance (ESG) goals to reduce greenhouse gas emissions. The company is in the process of purchasing a backup generator capable of supporting all key operational systems in the event of a power outage.

Premium market share

For the three months ending Aug. 31, 2022, the company achieved total market share of 8.6 per cent in the premium flower and preroll category across Canada. In 2022, the company has now consistently seen its average THC (tetrahydrocannabinol) increase significantly, with certain strains as high as 29 per cent THC. The company believes that its quality step change in market since the spring has been experienced by its consumers, and has led to the strong rate of sales and resulting increase in revenue. The company's priority and focus remains delivering superpremium-quality cannabis flower and prerolls as the key pillar of Rubicon's business.

The growth in the premium segment of the cannabis market in Canada continues to outpace the growth in the overall cannabis industry and Rubicon is seeking to capitalize on this trend with its new product launches across markets in September, and October, 2022.

Furthermore, according to Hifyre, Simply Bare organic continues to rank as the No. 1 premium brand by sales of flower and preroll products across Canada for the 12 months ending Aug. 31, 2022.

About Rubicon Organics Inc.

Rubicon Organics is the global brand leader in premium organic cannabis products. The company is vertically integrated through its wholly owned subsidiary Rubicon Holdings Corp., a licensed producer. Rubicon Organics is focused on achieving industry-leading profitability through its premium cannabis flower, product innovation and brand portfolio management, including its flagship superpremium brand Simply Bare organic, its premium flower and hash brand 1964 Supply Co., its premium concentrate brand Lab Theory, and its mainstream brand Homestead Cannabis Supply.

The company ensures the quality of its supply chain by cultivating, processing, branding and selling organic certified, sustainably produced, superpremium cannabis products from its state-of-the-art glass-roofed facility located in Delta, B.C., Canada.

We seek Safe Harbor.