Rubicon Organics Inc.

Good morning. Welcome to Rubicon Organic's second quarter 2022 financial results conference call. As a reminder, this conference call is being recorded on August 15, 2022. Note that all participants are in a listen-only mode. Following the presentation, we will conduct a question and answer session. Instructions will be provided at that time for research analysts to queue up for questions. Before we begin, I will refer you to slide two of our presentation, which contains Rubicon's caution regarding forward-looking statements and non-GAAP measures. Today's presenters will be Jesse McConnell, Chief Executive Officer, and Margaret Brody, Chief Financial Officer. I will now turn the call over to Jesse McConnell. Please go ahead.

Thank you, Operator, and good morning, everyone. The Rubicon investment thesis has been the same since we began. Firstly, cultivate the highest quality organic cannabis possible in the right size facility to generate strong operating leverage. Secondly, focus on the premium segment and design premium brands and products to deliver against targeted consumer insights. Right size, right segment, right strategy. Today, I am proud to announce that we have delivered on our first quarter of adjusted EBITDA profitability and that we are currently on a trajectory to grow our revenue, growth profit, and adjusted EBITDA in the upcoming quarters. In quarter two, we refined our focus by reducing our overall portfolio breadth and introduced new strains and formats to drive our portfolio deeper into provincial markets and onto store shelves. We began quarter two as a top 12 licensed producer, and in June, we became a top 10 licensed producer. In quarter two, we increased our market share to 2.3% of the total market, and in the month of June, it grew even further to 2.6%, making us one of the fastest-growing licensed producers in Canada. In our key segment, premium flower and pre-rolls, we were the number two licensed producer with an 8.6% market share and are the most premium-focused licensed producer with a 64% ratio of premium sales to total sales. Our net revenue grew 68% for the 12 months ended quarter two 2022 compared to 2021 and 92% net revenue growth for the three months ended quarter two 2022 compared to quarter two 2021. We continue to believe that innovative and novel genetics cultivated organically to the highest standard of quality is foundational to developing long-term equity in premium brands that consumers love and are loyal to. In quarter two, Simply Bare Organic remained the number one premium brand in Canada in flour and pre-rolls for the fifth quarter in a row with a 5.1% market share for the three months ended June 30th and retained the number one premium brand position across flour and pre-rolls in our home province of British Columbia with a 10.5% market share when the three months ended June 30th. Competing at the very top of the mainstream pricing segment, 1964 Supply Co. has become the number one mainstream brand in BC in the 3.5 gram format category, which is the highest sales volume category. 1964 Supply Co.

has been a major contributor to our revenue growth. As we look toward future growth areas,