Author: Atrium Research October 19, 2026
Nicholas Cortellucci, CFA | Equity Research Analyst | [email protected] | 647-391-3314
Luca Perna | Equity Research Associate | [email protected] | 647-969-1027
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What you need to know:
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ROMJ announced a $3.0M private placement with Siwash Rock Investments at $0.45/share, including no warrants or finder’s fees.
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The financing will go toward upgrading lighting solutions at Pacifica, increasing total annual capacity by 29% from 15,500kg to 20,000kg. This will also contribute to lower per-unit costs and increased gross margins.
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We also provide a preview of Q3 financials which we believe are a key catalyst for the stock.
Yesterday, Rubicon Organics Inc. (ROMJ:TSXV, ROMJF:OTCQX) announced a $3.0M private placement which will go towards upgrading lighting infrastructure at Pacifica. This should result in annual production capacity increasing 40% from 15,500kg to 20,000kg. We also provide a preview of our Q3 financials, which we expect to be a major inflection point for the Company, with the Cascadia ramp progressing. We are maintaining our BUY rating and $1.00/share target price on ROMJ.
Private Placement for Lighting Project Rubicon closed on a strategic non-brokered private placement with Siwash Rock Investments (led by Ted Reid), issuing ~6.67M common shares at $0.45/share for gross proceeds of ~$3.0M. This represents a slight premium to the last close. Proceeds will primarily be used to upgrade cultivation lighting and related infrastructure at the Pacifica facility (“The Lighting Project”), with the remainder allocated to working capital. The upgrades are expected to increase Pacifica’s annual production capacity by 40% to 15,500kg, bringing total Company capacity, including the Cascadia facility, to 20,000kg by June 2027. This accelerates ROMJ’s expansion plans by approximately one year, capturing the winter 2026 season.
Management stated that demand for Rubicon’s premium-quality cannabis has consistently exceeded its supply capacity, and the investment is expected to help address unmet demand by increasing total production capacity by 29%, while also lowering per-unit costs and increasing gross margins. As for our model, we have increased our expectations for 2027, now modelling revenue of $86.5M (previously $83.7M) and adjusted EBITDA of $12.0M (previously $11.6M). The bulk of the benefits from this project will be seen in 2028 (estimates not introduced yet).
Q3 Financials Preview ROMJ will be reporting Q3 financial results around mid-November. This represents an important quarter as Cascadia’s revenue begins to increase and margins are expected to improve. We are expecting the following results (unchanged):
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Revenue of $20.2M (+29% YoY, +50% on the two-year stack) vs. Capital IQ consensus of $20.0M.
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Gross margin of 36% compared to 29% in Q2/26 and 34% in Q3/25.
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Adjusted EBITDA of $1.7M (9% margin, flat YoY) vs. consensus of $2.0M.
Expands UK Portfolio with Full Spectrum Vapes On September 18ᵗʰ, ROMJ announced the launch of 1964 full spectrum vapes in the United Kingdom through its distribution partnership with 4C LABS. The launch builds on 1964’s initial UK entry in April with its Blue Dream and Stinky Pinky flower strains (see our note here), a portfolio that has since expanded to include Apples and Bananas flower. Extending the brand’s premium genetics into vape formats gives UK medical patients additional consumption options beyond flower while broadening 1964’s presence in a fast-growing market, with management citing UK patient numbers expected to grow 40% this year and rising demand for vape products.
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Atrium Research Ratings System
BUY: The stock is expected to generate returns of over 20% over the next 24 months.
HOLD: The stock is expected to generate returns of 0-20% over the next 24 months.
SELL: The stock is expected to generate negative returns over the next 24 months.
NOT RATED (N/R): Atrium does not provide research coverage on the respective company.
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