Pablo Zulanek's questions to Rubicon Organics Inc (ROMJF) leadership • Q4 2024
Question
Pablo Zulanek from Zulanek and Associates asked about the growth of the premium flower segment, whether 2024 sales were impacted by capacity constraints, and the potential for a sale-leaseback on the Hope facility. He also requested more detail on the company's strategy for infused pre-rolls and the growth drivers for its vape products.
Answer
Executive Margaret Brodie stated that while the overall premium segment did not grow last year, Rubicon's share did. She confirmed 2024 sales were 'absolutely impacted by capacity constraint' and that the company intends to own the Hope facility outright, ruling out a sale-leaseback for now. Regarding product strategy, Brodie noted that while infused pre-rolls are an opportunity, the company is prioritizing the larger vape market. She attributed vape success to consumer preference for flavor-forward, terpene-rich products over distillates.