Rubicon Organics Inc. (TSXV: ROMJ) (OTCQX: ROMJF) reported net revenue of $10 million for its third quarter ending Sept. 30, a 5% decrease from the same period in the previous year.
Net loss came out to $1.64 million versus $2.02 million in the same period last year, according to company filings.
“Despite the challenges encountered in the demanding Canadian cannabis sector with competitive price compression alongside broader negative macroeconomic pressures faced by Canadian shoppers, we persist in fortifying the company’s standing as a leading force in the premium cannabis market, and are looking forward to executing our strategy to leverage the strength of our leading premium brands.” interim CEO and CFO Margaret Brodie said in a statement.
Despite the revenue downturn, Rubicon touted its sixth consecutive quarter of positive adjusted EBITDA, registering $1.1 million. This represents a decrease compared to the same quarter last year. Gross profit stood at $3.2 million, a 21% decline from the third quarter of 2022.
The company also saw year-over-year growth in its cash balance, which climbed to $9.4 million from $6.8 million a year ago.
Rubicon launched new cannabis products, such as 1964 Supply Co live rosin edibles and Simply Bare Organic infused pre-rolls, during the quarter, reinforcing its focus on the premium cannabis segment.
The company’s market share statistics showed a 2% national share for flower and pre-rolls and a 5.6% share in the premium segment for the quarter. For premium edibles, which the company launched in the second quarter, market share stood at 5.1%.
Rubicon’s key priorities for the remainder of the year focus on optimizing cultivation yield, maximizing the Canadian premium opportunity, and driving process efficiency.
The company also lodged a lawsuit against the city of Pontiac, Michigan, due to a long-standing dispute over a failed medical cannabis hub proposal. Rubicon is alleging a loss of $45 million related to the dispute, saying that the city’s refusal to issue it a medical license caused Rubicon to lose millions in potential rent from businesses.
Pontiac countered with allegations of bribery involving former city officials, including a previous mayor. Rubicon is seeking $60 million in damages.