Achieved net revenue of $8.9 million for the three months ended March 31, 2024 Adjusted EBITDA1 loss of $0.4 million for the three months ended March 31, 2024 Negative operating cash flow of $0.9 million for the three months ended March 31, 2024 Number one premium licenced producer across all categories2 2.0%3 national market share of flower and pre-rolls for the three months ended March 31, 2024 7.1%4 national market share of premium flower and pre-rolls for the three months ended March 31, 2024 WildflowerTM is the number one topical brand in Canada with market share of 30.6%5 for the three months ended March 31, 2024 22.8%6 national market share of premium edibles for the three months ended March 31, 2024 Launch of full spectrum extract vapes in Alberta, BC, and Ontario in May 2024 VANCOUVER, British Columbia , May 15, 2024 (GLOBE NEWSWIRE) -- Rubicon Organics Inc. (TSXV:ROMJ) (OTCQX:ROMJF) ("Rubicon Organics", "Rubicon", or the "Company"), a licensed producer focused on cultivating and selling organic certified, premium cannabis, today reported its financial results for the three months ended March 31, 2024 ("Q1 2024"). All amounts are expressed in Canadian dollars. "Rubicon Organics holds the #1 premium position in Canada and is poised for growth with the launch of our full spectrum extract vapes line tapping into the highest growth segment in Canada. With a focus on quality, we are confident that our vape launch will not only drive revenue growth but also solidify our position as a leader in the Canadian cannabis market. "We anticipated a challenging Q1 due to typical seasonality and the overhang of weak consumer sentiment from 2023. I expect to recover from this temporary dip from our streak of positive Adjusted EBITDA in Q2. In Q1, a changing product mix reduced our gross margin, but this spring we've shifted focus to higher-margin products, expecting improved results in Q2 and beyond. Our Q1 working capital investment for product launches is expected to come to fruition delivering further net revenue growth starting in Q2. Additionally, our first-half results are influenced by the ongoing one-time ERP implementation", said Margaret Brodie, CEO. 1 Adjusted EBITDA is a non-GAAP measure that is calculated as earnings (losses) from operations before interest, tax, depreciation and amortization, share-based compensation expense, and fair value changes. Included in Adjusted EBITDA in the three months ended March 31, 2024 is $0.3 million of one-time costs incurred for the ERP implementation project. See Non-GAAP Financial Measures for details on the Adjusted EBITDA calculation. 2 Hifyre data for premium products covering flower, pre-rolled products, concentrates, edibles, topicals, and vapes for the three months ended March 31, 20243 Hifyre data for flower & pre-rolled products covering three months ended March 31, 20244 Hifyre data for premium flower & pre-rolled products covering three months ended March 31, 20245 Hifyre data for topical products covering three months ended March 31, 20246 Hifyre data for premium edible products covering three months ended March 31, 2024 Janis Risbin, CFO, said "Despite the market challenges, we've managed to maintain revenue levels in line with Q1 2023, a testament to our resilience and adaptability. With the expected re-financing of our debt later this year, we remain focused on strengthening our already solid foundation and continuing to invest opportunistically for growth in 2024 and beyond." Q1 2024 and Subsequent Highlights:For the three months ended March 31, 2024 Net revenue of $8.9 million (1% increase from Q1 2023) Gross profit before fair value adjustments of $2.2 million (28% decrease from Q1 2023) Adjusted EBITDA1 loss of $0.4 million compared to profit of $1.7 million in Q1 2023 Cash used by operating activities was $0.9 million compared to cash provided by operating activities of $0.2 million in Q1 2023 Number one premium licenced producer across all categories7 2.0%8 national market share of flower and pre-rolls 7.1%3 national market share of premium flower and pre-rolls 30.6%4 national market share of topical products 6.7%9 national market share of premium concentrates 22.8%10 national market share of premium edibles Launch of 1964 Supply Co.TM full spectrum extract ("FSE") vapes, initially available for Blue Dream and Comatose, with purchase orders received from Alberta, BC and Ontario. 7 Hifyre data for premium products covering flower, pre-rolled products, concentrates, edibles, topicals, and vapes for the three months ended March 31, 20248 Hifyre data for flower & pre-rolled products covering twelve months ending March 31, 20249 Hifyre data for premium concentrates products covering twelve months ending March 31, 202410 Hifyre data for premium edible products covering twelve months ending March 31, 2024 2024 Results of Operations:   Three months ended   March 31, 2024$ March 31, 2023$ Net revenue 8,890,417   8,799,940   Production costs 2,692,692   2,678,604   Inventory expensed to cost of sales 3,737,334   2,934,894   Inventory written off or provided for 266,039   157,424   Gross profit before fair value adjustments 2,194,352   3,029,018   Fair value adjustments to cannabis plants, inventory sold, and other charges 164,252   139,463   Gross profit 2,358,604   3,168,481