Good morning. Welcome to Rubicon Organics Q2 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 Q&A 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 Organics's caution regarding forward-looking statements and non-GAAP measures. Today's presenters will be Jesse McConnell, Chief Executive Officer, and Margaret Brodie, 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 Organics 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 Q1 of Adjusted EBITDA profitability and that we are currently on a trajectory to grow our revenue, gross profit, and Adjusted EBITDA in the upcoming quarters. In Q2, 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 Q2 as a top 12 licensed producer, and in June, we became a top 10 licensed producer. In Q2, 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 No. 2 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 Q2, 2022 compared to 2021, and 92% net revenue growth for the three months ended Q2, 2022 compared to Q2, 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 and premium brand that consumers love and are loyal to. In Q2, Simply Bare Organic remains the number one premium brand in Canada in flower and pre-rolls for the fifth quarter in a row, with a 5.1% market share for the three months ended June thirtieth, and retained the number one premium brand position across flower and pre-rolls in our home province of British Columbia, with a 10.5% market share for the three months ended June thirtieth. 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 g 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, we anticipate that our business will accelerate in both Ontario and Quebec because of innovative new genetics and product listings that we have recently secured for both quarter three and quarter four. Moreover, and perhaps more importantly, since the beginning of this year, we have seen the foundation of our investment thesis proven out, namely that the premium segment will outpace the growth of the total market as consumer taste preferences evolve and mature, resulting in the correspondent development of real brand equity. As the pace of the overall market growth decelerates, the premium segment has in fact accelerated from a 28% growth rate in December 2021, which was equivalent to the overall market growth rate, to a 51% growth rate, doubling the growth rate of the current total market. The two risks that I would flag here are the macro environment risk of a Canadian recession. While Rubicon is not opining on the likelihood of it occurring, we are nonetheless risk adjusting our behavior given the possibility and are being especially prudent in our allocation of capital. Secondly, the recent OCS distributor cyberattack, which presents a short-term risk impacting the availability of OCS warehoused inventory for retail stores. We have not yet noticed any change in the cadence of ordering. However, it may have a minor impact on our Q3 revenues if it is not resolved in the near term. I will now pass the call over to Margaret, who will share some specifics about our financials, after which I will provide an update on the key deliverables of our three pillar strategy. Thank you, Jesse, and good morning, everyone. I am pleased to report that in the three months ended June 30, 2022, Rubicon Organics reported record net revenue of CAD 8.8 million and achieved positive Adjusted EBITDA for the first time. Firstly, in terms of revenue, we earned CAD 8.8 million in revenue in Q2 2022, a 92% or CAD 4.2 million increase over Q2 2021. On a trailing twelve-month basis, net revenue was CAD 27.8 million, a 68% or CAD 11.3 million increase as compared to the same period in 2021. This increase in net revenue was 72% growth compared to Q1 2022, driven by the launch of several new strains and product formats in both Simply Bare Organic and 1964 Supply Co. As is typical in the cannabis industry, Q1 2022 was impacted by the seasonality of Dry January and the provincial distributor year-end to March 31. We believe that the largest contributor to our revenue growth is a step-up in our product quality. The company has also achieved Adjusted EBITDA of CAD 300,000. This Adjusted EBITDA is driven by a large increase in our revenue, increased throughput of our facility, meaning our costs are spread over a larger base, delivering better gross profit, and continued prudence on our spending and operating expenses. I would note that taking out the termination accrual for our former president of CAD half a million dollars, net of the reduction of other C-suite compensation and adding back one-time inventory write-downs, the Adjusted EBITDA figure would be over CAD 800,000 in Q2 2022. The company has maintained a strong balance sheet with CAD 6.8 million in cash and CAD 19.4 million in working capital at June 30. We currently have CAD 5.6 million in cash with CAD 6.2 million in receivables, of which CAD 3.9 million is imminently receivable in the next two weeks, due by the end of August. In June 2022, we have arranged an extension to our existing secured debt due to December 2024, giving Rubicon a strong position with its current trajectory to repay or seek competitive longer-term mortgage financing in the coming years. Rubicon's cash position and working capital mean that we are confident in our ability to fund the growth in the H2 of 2022 and beyond. Rubicon Organics has only one large capital project budgeted for 2022, and it's in its final stage of completion. This project is the BC Hydro grid connection, which is funded by our existing capital. This project was due to be completed by June 2022, but with global supply chain delays and labor shortages of Hydro, it drifted into the Q3, and we are waiting BC Hydro to hook us up into the system in just the next coming days. We have been pushing this project forward as quickly as possible as the cost savings of being on the Hydro grid are significant to our business and are expected to be well over CAD 1 million in operating cost savings annually. In terms of costs in general, given the high inflationary environment in which the company is operating in 2022, management continues to monitor costs closely and is actively seeking cost-saving initiatives. That can be seen in the prudence in which we are incurring our operating expenses. As I said earlier, Rubicon experienced a 72% growth in net revenue for the three months ended June 30, 2022, driven by the launch of several new strains in product formats in both Simply Bare Organic and 1964 Supply Co. We have seen a tremendous increase in our rate of sale of Simply Bare and 1964, as well as a large increase in the number of distribution points in store, that being the number of our SKUs carried by each individual store, which we believe is attributable to the continued improvement in our product quality and higher THC results and the strength of our sales and marketing teams. The revenue growth has been experienced relatively evenly across all our key markets of Alberta, our home province of BC, Ontario, and Quebec, which together make up 97% of our sales in both the three and six months ended June 30th, 2022. As you may know, selling to Crown corporations means that credit risk around our receivables is very low. After our revenue, our gross profit before fair value adjustments is impacted by two things. Firstly, our production costs, and secondly, the inventory expense to cost of sales, or the costs incurred in drying, processing, and packaging our products. In terms of our production costs, we have seen a slight increase in our costs in the Q2 of 2022, but that's related to an increase in plant density, our improved plant handling techniques, and the number of plants we have in situ, meaning additional labor is required during the cultivation cycle and its harvest. In addition, there has been a notable increase in the cost of fertilizer and other input materials due to inflation, as well as the need for additional inputs due to larger crop sizes and the increased number of plants on-hand. This cost increase is expected and having a direct impact on our increased quality and yield from the Delta facility. We do expect this cost increase will be offset in the second part of 2022 once the Hydro project comes online. With respect to inventory expense to cost of sales, we have seen the ratio of this relative to net revenue decrease due to more throughput of our facility, meaning that the overheads are spread on a larger number of units. Given the increase in production and sales, this has positively impacted the ratio. Our product mix also has a large impact on the ratio of inventory expense to cost of sales relative to revenue. In the period, the company's ratio has been most impacted by two factors. Firstly, the growth in larger format products, such as 28 g, which in some provinces gives the customers a lower per-gram price. Secondly, the increase in sales in 1964 Supply Co., which sells at a more competitive price point than Simply Bare. Overall, our gross profit in Q2 2022 is CAD 2.8 million, meaning that we are on an annualized run rate of around CAD 11.2 million in gross profit. Reviewing our performance on a trailing twelve-month basis, net revenue is CAD 27.9 million, a 68% or CAD 11.2 million increase as compared to the same period in 2021. We have enjoyed growing positive gross profit trend over the last four quarters and expect this trend to continue through 2022. With our current revenue trajectory, full portfolio of brands in key markets in Canada and current business structure, we may remain on track to deliver on our guidance. A positive operating cash flow in each of Q3 and Q4 of 2022 and positive adjusted EBITDA in the full year of 2022. I would now like to turn the meeting back to Jesse to share more on our 2022 outlook. Jesse, you're on mute, I believe. Thank you, Margaret. Our three pillar strategy is composed of clear business priorities with the goal of delivering sustainable profitability. Firstly, optimizing yield and increasing quality from our production facility to improve the potential possible gross profit pool for every gram produced. Secondly, improving product mix to maximize the Canadian domestic market opportunity. Thirdly, obtaining the requisite certifications to enable us to build an international route to market, to take advantage of the international price premium and establish our brands in emerging markets. Each pillar is expected to have a positive impact on our long-term profitability and cash flow. We continue to meet our quarterly yield targets due to our continuous improvement process and genetic portfolio optimization. In Q2, we achieved a yield run rate of approximately 10,000 kg per annum. We also continue to see an increase in our average THC that have exceeded our internal quarterly targets, with some genetics testing as high as 29% THC. Not surprisingly, these ultra-high THC results have corresponded to a significant increase in the rate of sale of those genetics. We are well on our way to achieving our yield goal of 11,000 kg, and we expect to achieve it by the end of quarter three versus our previous expectation of quarter four. With the development of 1964 towards a mainstream brand leader, along with the continued success of Simply Bare as a leading premium brand in Canada, Rubicon now has access to a wider pool of consumers at different price points. The process of managing margin mix is always ongoing, and while we anticipate that large format will be a key value driver of our brands in the medium term, as the premium market grows, we will become supply constrained in large format and expect to allocate flower away from large format toward higher margin categories like 3.5 g. Our production costs have historically remained quite flat, but increased in Q2 slightly due to the increased labor, soil and fertilizer required to deliver the increased yield and quality, and in large part due to inflationary pressures of the production input materials. Last quarter we announced that Rubicon received IMC-GAP certification, which is a key milestone that allows us to sell cannabis into certain international markets, including Israel and to EU GMP processing facilities for access into Europe and Australia. We expect to ship our first product internationally in Q4 of 2022 or early in 2023. The company is also working toward the receipt of its EU GMP certification and having undergone a preliminary audit subsequent to Q2, we now expect to receive our EU GMP certification in Q1 of 2023. Rubicon has built the leading premium brand portfolio in Canada, and we continue to experience significant domestic growth. Our vision is to be the global brand leader in premium organic cannabis, and we see the opportunity to maximize our gross profit through the international markets over the next two-five years as medical cannabis markets grow and recreational markets are established. Having realized our goal of becoming EBITDA positive in Q2, Rubicon has set new financial goals for 2022. The company's current expectation is to continue to achieve positive operating cash flow in the H2 of 2022, and we now update our guidance to Adjusted EBITDA profitability for the full year 2022. Q2 is a watershed moment for Rubicon Organics as we inflect into profitability and carry that momentum through the rest of the year. We believe that despite any market volatility in 2022, our relentless focus on our three key priority areas will deliver sustainable profitability and position Rubicon to grow its leadership position in the premium cannabis market. We would now like to open the line for analyst questions. Operator, please open the line. Thank you, sir. Ladies and gentlemen, if you would like to ask a question, please slowly press Star followed by one on your touchtone phone. You will then hear a three-tone prompt acknowledging your request. If you would like to withdraw from the question queue, simply press Star followed by two. If you're using a speakerphone, please lift the handset before pressing any keys. Please go ahead and press Star one now if you have a question. Your first question will be from Neal Gilmer at Haywood Securities. Yeah. Good morning, Jesse and Margaret, and congrats on a strong quarter. Jesse, in your prepared remarks, you talked about your sort of current mix is about 64% premium, I believe is what you referenced, and that I know that your focus is on the premium segment. How do you see that evolving over time? Do you expect it to sort of still stay that 2/3- 1/3 ballpark area? Or, would you be moving more into premium or a little bit more on the mainstream side of things? That's a great question, Neil. When we look at our current mix between Homestead, our value brand, 1964, our mainstream, and Simply Bare, our premium brand, a number of our products in 1964 fall in the premium segment when we look at it from a pricing perspective, particularly at the Hifyre data. Our expectation is in the upcoming quarters, the amount of product that we'll be able to allocate to Homestead will become much smaller, and the majority of our products will go between Simply Bare, which we anticipate growing slightly, and 1964, which we anticipate growing rapidly. This data, of course, is coming out of Hifyre, as Neil, as you know. The expectation is that ratio will continue to grow. Great. Thanks for that. Second question is on the international side of things. Obviously, you provided an update on your timeline and expectations for at least your first shipment. Just wondering if you can provide any color on some, like, you know, until you get the final certification, are you still able to have those sort of ongoing conversations and sort of build a pipeline that sort of helps fill out 2023, as far as, you know, customers you'll be looking to ship to? Another great question. There's two different certifications required. As I mentioned, the IMC-GAP, which currently enables us to ship to Israel. Those conversations are in late-stage negotiations. We do not require any additional certifications in order to ship to countries like Israel or others that only require a GACP. As for the EU, we are contacted quite regularly. Had many conversations regarding shipping to the German marketplace, which, as you know, is anticipated to open up in late 2023, early 2024 for the recreational market. I would anticipate that we have that certification sometime in early 2023, and then we'd be shipping subsequent to that. Okay. Thank you. My last one is a small one maybe for you, Margaret. On the BC Hydro, when you get that to CAD 1 million plus in annual savings once you're connected, does that all flow through the production costs, and that's where we should see a slight benefit from that being hooked up? Yeah. Similar to our ratio of depreciation, it ticks into our overhead costs. I think, like, because we do it on a usage perspective, obviously the majority of our facility is the greenhouse, so about 80% of it will go there. I do anticipate that we're gonna be closer to CAD 1.5 million in annualized savings, but I'm making sure I deliver saying CAD 1 million. Okay. It is truly in the coming days. We're just waiting on BC Hydro to come in and connect the connection. It should be on the outside by the 26th of August. Very great. Thanks for taking my questions. Thanks, Neal. Once again, as a reminder, ladies and gentlemen, if you would like to ask a question, please press Star followed by one on your touchtone phone. Your next question will be from Rahul Sarugaser at Raymond James. Please go ahead. Morning, Jesse. Morning, Margaret. Thanks so much for taking our questions, and yeah. Congratulations from us on the very, very strong quarter. Jesse, you alluded to, like, guidance to, you know, providing positive EBITDA for the remainder of the year. Clearly you see durability in your EBITDA trajectory. Given the operating leverage on the company, could you know, perhaps give us a little bit more color in terms of, you know, how we actually, you know, as, you know, as a proportion of revenue dropping to the bottom line now that you essentially have covering potentially most of the costs of the company going forward? Okay. I'm gonna turn that question over to Margaret. Morning, Rahul. Best way to think about it is our production costs are fixed, so I'm going to talk about gross profit. If you were to conservatively keep the ratio of inventory expense to cost of sales over revenue, I'm imagining it's around 32%-34%. Any increase in dollars, you just add to that line, and our operating expenses are expected to remain fixed. If I were you and mapping this out on a quarterly basis, I would look at the Hifyre data on how we're progressing in terms of what we've achieved so far, the indicator we've given with our receivables, and just seeing that growth multiplied out by our inventory expense or cost of sales. Keep the OpEx the same, and away you go. Great. That makes the math easy. Thanks, Margaret. No problem. The follow-on question is then, you know, you also guided to being cash flow positive this year. What are some of the additional levers that we should be looking at as you then, you know, sort of make that transition from EBITDA positive right through to cash flow positive? You want me to expand on what additional levers that you'll be looking for? I mean, we're expecting to be cash flow positive as we go through the end of the year. Of course, there are decisions that we can make around CapEx, as right now we have no material CapEx plan for the rest of the year. Given the growth trajectory that we are currently on and the demand that we are seeing, there is a conversation ongoing on whether or not we should put in incremental tables. They're not currently budgeted in our forecast right now. It would be a CapEx spend of around CAD 900,000-CAD 1 million, giving us more real estate and then therefore more yield, approximately 10%-15% more than we currently have as an expectation. That's the only significant considered CapEx. Okay, great. That's really helpful. Just finally, you know, given that you've driven such strong revenue and market share growth over the last quarter, and assuming that does persist. Could you maybe give us a little bit more color in terms of the interplay between the three brands, Simply Bare, 1964 and Homestead, and how, you know, filling those respective channels, how you're optimizing the filling of those respective channels to optimize your margin profile? Yeah. It's really about a portfolio strategy that aligns to good, better, best. Inside each one of those portfolios, having the right genetics at the right price points to match the consumer insights that we see against those brands. Homestead is largely a brand that we use to move product that doesn't meet a quality standard for some reason, or that we are phasing out. We expect this in quarter three. In fact, we become supply constrained on that because the quality is just too high for that brand, and we'd expect to see that contributing less and less to our overall revenues and becoming fairly insubstantial by 2023. The 1964 brand we expect to continue to grow quite significantly. It's priced at the top of the mainstream segment, as we define mainstream. I expect under Hifyre that you'll see that begin to show up under premium, as to how they define pricing for premium. That brand has experienced significant growth. As we go forward and become supply constrained inside of our brands, you're gonna see us shift product formats, moving from things like large format bags, which are definitely delighting the consumer, and into even higher margin products like 3.5 g and pre-rolls. As demand grows in those categories, we'll be allocating supply more to that, and that will help us drive more margin in line with what we see in the premium segment, which is the growth outpacing the total market. Great. That's very helpful. I know I said that was my last question, but I will ask one more, if you don't mind. Given success in Alberta, BC, Ontario, and we're also able to somewhat track that, of course, through the Hifyre data. Quebec is the one region, of course, where we have limited visibility, you know, as analysts. Could you give us a little more color in terms of, you know, how Quebec is playing out? You know, 'Cause that could be a particularly a big lever for revenue, as you know, as you drive forward. Yes. Quebec is a difficult market to enter. When we first entered Quebec, there was 11 other LPs. I believe currently there's 24. We've been very focused on Quebec as we have under indexed in Quebec relative to the rest of the country. We anticipate that changing in quarter three, quarter four for a couple of reasons. One, we've seen the inflection point on our own sales growth recently in quarter three, where we are now selling more than we were on a year-over-year basis in Quebec. Secondly, the largest value driver for us will be the new SKUs and product formats that we have listed in Quebec. Our current listing is 5 different SKUs in Quebec, and we'll be going to 15 SKUs in Quebec in the fall, through September and October. A large portion of those are going to be in-store, while currently we only have three products in-store. The rate of sale difference between an in-store product and an online product is quite significant. We're expecting to see a lot of growth coming out of Quebec in quarter three and quarter four. That's very good to hear. Well, thank you very much again for taking our questions for us again on the quarter, and I'll get back in the queue. Thank you, Rahul. Thank you. At this time, Mr. McConnell, we have no further questions. Please proceed with closing remarks. Thank you. Well, I'd like to thank everybody for joining our Q2 earnings call today. A special thank you to the team at Rubicon Organics, who've been so passionate and focused on our vision to become the global brand leader in premium organic cannabis. They should be very proud in what they've accomplished as we inflect into profitability and drive that profitability going forward. Thank you, everyone. Thank you, sir. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending. At this time, we do ask that you please disconnect your lines.