Happy Friday, welcome to the latest Trade To Black podcast for April 4, 2025. Hosts Shadd Dales and Anthony Varrell welcome Rubicon Organics CEO Margaret Brodie to break down the company’s market performance including impressive 2024 earnings. We’ll discuss the latest news and how the markets are faring in the wake of the tariff impacts, and Frank Colombo, CFA from Viridian Capital returns to unpack the cannabis capital crunch, including the latest defaults in the industry, along with the Chapter 11 bankruptcy filing of Gold Flora.
Cannabis stocks have seen sharp declines, driven more by investor uncertainty and ETF outflows than company-specific fundamentals. While US flower production remains domestic, components like vape hardware and packaging are sourced from overseas, making them vulnerable to cost increases. The broader concern isn’t the immediate cost impact but the unpredictability of global trade policy and how it will ripple through the cannabis supply chain. Plus, recent news from a bill from Rep. Mikie Sherrill (D-NJ), proposing drug testing for Elon Musk and others working in sensitive government roles under the Department of Government Efficiency (DOGE).
Frank Colombo of Viridian Capital Advisors discusses a wave of recent credit defaults in the cannabis sector. He highlighted a specific ratio—total liabilities to market cap—as an effective early warning system. Companies like Tilt, Gold Flora, and Ascend were flagged as having shown distress through this ratio long before formal restructuring events occurred.
Rubicon Organics (TSXV: ROMJ) (OTCQX: ROMJF) posted a 21% year-over-year revenue jump, hitting $48.7 million. Margaret Brodie explains how Rubicon, known for its premium and organic cannabis products, made significant market headway in vapes, flower, and brand development—setting the stage for a stronger 2025.
Brodie credited the success to combining top-tier branding with quality products, highlighting that their full-spectrum vapes captured 13.4% market share within six months. As Canadian cannabis faces supply strain, Rubicon’s agility positions it well for continued growth. Plans are already in motion for a 47,500 sq. ft. expansion in Hope, BC, aiming to boost capacity by 40% and increase annual output to 15,500 kg.
