Rubicon Provides Update on Progress of Strategic Plan
December 07 2022 - 8:45AM
Business Wire
Company reports positive progress on
recapitalization of debt, attraction of additional equity
investment, material cost reductions, and simplification of capital
structure
Rubicon Technologies, Inc. (“Rubicon” or the “Company”) (NYSE:
RBT), a leading digital marketplace for waste and recycling and
provider of innovative software-based products for businesses and
governments worldwide, today provided an update on the progress of
its strategic plan as previously discussed in the Company’s
third-quarter earnings materials.
Rubicon’s strategic focus is to accelerate its progress to
profitability by improving margins and reducing operating costs,
and to increase financial flexibility by simplifying its capital
structure. In support of these goals, Rubicon has executed on a
number of initiatives which are already improving the availability
of working capital for the Company and helping to drive shareholder
value. The actions taken include:
- Extending near-term debt maturities to December 2023;
- Securing an additional $30 million of fully committed equity
capital from new and existing investors;
- Simplifying the Company’s capital structure through the
termination of Forward Purchase Agreements with both Atalaya and
Vellar;
- Reducing costs across the organization, including measures
designed to help optimize supplier costs and non-payroll general
and administrative expenses, a previously announced reduction in
force, and additional steps to help improve pricing within certain
segments of Rubicon’s customer portfolio.
"We are pleased with our progress toward our key goals for this
year and beyond. We believe that these steps address our current
working capital needs and demonstrate clear advancement of our
financial and operational objectives as detailed in our Q3 earnings
materials,” said Phil Rodoni, CEO of Rubicon. “Further, we believe
that the commitment of additional capital is a strong indicator of
confidence in our business from both existing and new investors. We
thank them for their continued support and look forward to sharing
more information on our path to profitability and plans for our
next phase of growth in the coming quarters."
For additional information please refer to Rubicon’s third
quarter earnings materials and SEC filings, including the Company’s
Current Reports on Form 8-K filed with the U.S. Securities and
Exchange Commission (the “SEC”) on November 9, 2022, November 18,
2022 and December 1, 2022 and Quarterly Report on Form 10-Q filed
with the SEC on November 21, 2022, available on the IR section of
the Company’s website.
About Rubicon
Rubicon Technologies, Inc. (NYSE: RBT) is a digital marketplace
for waste and recycling, and provider of innovative software-based
products for businesses and governments worldwide. Striving to
create a new industry standard by using technology to drive
environmental innovation, the company helps turn businesses into
more sustainable enterprises, and neighborhoods into greener and
smarter places to live and work. Rubicon’s mission is to end waste.
It helps its partners find economic value in their waste streams
and confidently execute on their sustainability goals. To learn
more, visit rubicon.com.
Forward-Looking Statements
This press release includes forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), regarding, among other things, the
plans, strategies and prospects, both business and financial, of
Rubicon. Although Rubicon believes that its plans, intentions and
expectations reflected in or suggested by these forward-looking
statements are reasonable, Rubicon cannot assure you that it will
achieve or realize these plans, intentions or expectations. All
statements, other than statements of present or historical fact
included in this press release, are forward-looking statements.
These statements may be preceded by, followed by or include the
words “believes,” “estimates,” “expects,” “projects,” “forecasts,”
“may,” “will,” “could,” “would,” “should,” “seeks,” “plans,”
“scheduled,” “anticipates,” “intends,” the negative of such terms
and similar expressions, although not all forward-looking
statements contain such identifying words. Forward-looking
statements are inherently subject to risks, uncertainties and
assumptions and other factors which could cause actual results to
differ materially from those expressed or implied by such
forward-looking statement. These forward-looking statements are
based upon current expectations, estimates, projections, and
assumptions that, while considered reasonable by Rubicon and its
management, are inherently uncertain; factors that may cause actual
results to differ materially from current expectations include, but
are not limited to: 1) the outcome of any legal proceedings that
may be instituted against Rubicon or others following the closing
of the business combination; 2) Rubicon’s ability to meet the New
York Stock Exchange’s listing standards following the consummation
of the business combination; 3) the risk that the business
combination disrupts current plans and operations of Rubicon as a
result of consummation of the business combination; 4) the ability
to recognize the anticipated benefits of the business combination,
which may be affected by, among other things, the ability of the
combined company to grow and manage growth profitably, maintain
relationships with customers and suppliers and retain its
management and key employees; 5) costs related to the business
combination; 6) changes in applicable laws or regulations; 7) the
possibility that Rubicon may be adversely affected by other
economic, business and/or competitive factors, including the
impacts of the COVID-19 pandemic, geopolitical conflicts, such as
the conflict between Russia and Ukraine, the effects of inflation
and potential recessionary conditions; 8) Rubicon’s execution of
anticipated operational efficiency initiatives, cost reduction
measures and financing arrangements; and 9) other risks and
uncertainties. More information regarding the risks and
uncertainties and other important factors that could cause actual
results to differ materially from those in the forward-looking
statements is set forth under the heading “Risk Factors” in
Rubicon’s Registration Statement on Form S-1, as filed with the SEC
on August 22,2022, and as may be updated in Rubicon’s Quarterly
Reports on Form 10-Q and Rubicon’s other filings with the SEC.
There may be additional risks that Rubicon presently does not know
of or that Rubicon currently believes are immaterial that could
also cause actual results to differ from those contained in the
forward-looking statements, many of which are beyond Rubicon’s
control. Forward-looking statements are not guarantees of future
performance and speak only as of the date hereof. Rubicon does not
undertake, and expressly disclaims, any obligation to update or
revise publicly any forward-looking statements, whether because of
new information, future events, or otherwise, except as required by
law.
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version on businesswire.com: https://www.businesswire.com/news/home/20221207005222/en/
Investor Contact: Sioban Hickie, ICR, Inc.
rubiconIR@icrinc.com
Media Contact: Dan Sampson Chief Marketing & Corporate
Communications Officer dan.sampson@rubicon.com
RubiconPR@icrinc.com
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