Report
FREE
• Last month, MTL Cannabis (MTLC:CSE) was acquired by Canopy for 11.6x LTM EBITDA, which would value ROMJ at $1.50/share.
• There has been steady insider buying of ROMJ with Director Doris Bitz purchasing $31K and Director John Pigott purchasing $48K.
• ROMJ closed on a $4M credit facility and received numerous awards at the KIND Awards, including Flower of the Year.
• We also provide a preview of Q4 financials, which should be released around late March.
There have been several strong developments with Rubicon Organics Inc. (ROMJ:TSXV, ROMJF:OTCQX) and the Canadian cannabis industry as a whole over the last month that we would like to highlight. We continue to view the current price as an excellent entry point for investors as the Company enters a new phase of growth. We remind readers that we recently conducted an interview with CEO Margaret Brodie; watch it here. We are maintaining our BUY rating and $1.00/share target price on Rubicon Organics.
MTLC Acquired by Canopy
On December 15th, Canopy Growth (WEED:TSX) announced the acquisition of MTL Cannabis (MTLC:CSE). The acquisition aims to elevate Canopy’s position in Canada’s medical cannabis market, leverage MTL’s production assets, and strengthen Canopy’s presence in Quebec, amongst other points. This valued the equity of MTLC at $125M and the enterprise value at $179M, a 45% premium to the 20-day VWAP. This represents 11.6x LTM EBITDA, a significant valuation benchmark over all small Canadian LPs. This number may be slightly overstated as WEED stock rallied ~50% in the days prior. If we apply this same multiple to ROMJ’s 2026E EBITDA, we arrive at a takeout price of $1.50/share (203% upside).
Closing of New Credit Facility
On December 2nd, the Company announced the closing of its credit agreement for up to $4.0M, consisting of a $3.0M capital loan and a $1.0M line of credit. This financing will support accretive projects at the Pacifica and Cascadia sites and also provide the Company with enhanced flexibility while maintaining a strong balance sheet.
ROMJ: Lots of Positive Developments; Reiterating Bullish Stance
What you need to know:• Last month, MTL Cannabis (MTLC:CSE) was acquired by Canopy for 11.6x LTM EBITDA, which would value ROMJ at $1.50/share.
• There has been steady insider buying of ROMJ with Director Doris Bitz purchasing $31K and Director John Pigott purchasing $48K.
• ROMJ closed on a $4M credit facility and received numerous awards at the KIND Awards, including Flower of the Year.
• We also provide a preview of Q4 financials, which should be released around late March.
There have been several strong developments with Rubicon Organics Inc. (ROMJ:TSXV, ROMJF:OTCQX) and the Canadian cannabis industry as a whole over the last month that we would like to highlight. We continue to view the current price as an excellent entry point for investors as the Company enters a new phase of growth. We remind readers that we recently conducted an interview with CEO Margaret Brodie; watch it here. We are maintaining our BUY rating and $1.00/share target price on Rubicon Organics.
MTLC Acquired by Canopy
On December 15th, Canopy Growth (WEED:TSX) announced the acquisition of MTL Cannabis (MTLC:CSE). The acquisition aims to elevate Canopy’s position in Canada’s medical cannabis market, leverage MTL’s production assets, and strengthen Canopy’s presence in Quebec, amongst other points. This valued the equity of MTLC at $125M and the enterprise value at $179M, a 45% premium to the 20-day VWAP. This represents 11.6x LTM EBITDA, a significant valuation benchmark over all small Canadian LPs. This number may be slightly overstated as WEED stock rallied ~50% in the days prior. If we apply this same multiple to ROMJ’s 2026E EBITDA, we arrive at a takeout price of $1.50/share (203% upside).
Closing of New Credit Facility
On December 2nd, the Company announced the closing of its credit agreement for up to $4.0M, consisting of a $3.0M capital loan and a $1.0M line of credit. This financing will support accretive projects at the Pacifica and Cascadia sites and also provide the Company with enhanced flexibility while maintaining a strong balance sheet.
Underlying
Rubicon Organics
Provider
Atrium Research Corporation
Atrium Research provides institutional quality issuer paid research on North American public equities using deep fundamental analysis. Our research reports are disseminated through Bloomberg, FactSet, Capital IQ, Reuters and many more, as well as through our social media and email distribution lists.
Ben Pirie
Other Reports on these Companies
Other Reports from Atrium Research Corporation
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.