Proposal could result in Rubicon going private

A Schedule 13D document filed last week with the U.S. Securities and Exchange Commission (SEC) entails an offer to purchase all listed shares of Lexington, Kentucky-based Rubicon Technologies Inc. to take the firm private.

The document filed on behalf of Jose Miguel Enrich, who lists a Florida address and Mexican citizenship, says in part, “If the proposed transaction is consummated, the common stock of the Issuer would become eligible for termination of its registration” on the New York Stock Exchange (NYSE).

Rubicon Technologies provides software-based waste, recycling and fleet operations products and includes services that attempt to connect waste and recyclables generators with recycling end markets. As of March 15, the company’s stock carries a share price of less than 60 cents.

According to Investopedia, when an NYSE stock price closes below $1 per share for 30 consecutive trading days, the exchange will initiate a delisting process. Rubicon’s shares have been below that price since Feb. 20.

In the fourth quarter of 2023, Rubicon reported a net loss of $15.1 million and for the full year last year a net loss of $77.6 million. The yearly figure represents an improvement compared with the $281.8 million net loss Rubicon experienced in 2022.

Rubicon currently does not mention the SEC document filed by Enrich, which is dated March 12.

In early-March comments accompanying its most recent financial results, Rubicon lists current liabilities of more than $65.4 million and current assets of slightly less than $18.7 million.

Fintel lists the recent 13D filing by Enrich as the investor’s only documented activity with the SEC in the past 12 months. That website also lists him as maintaining a portfolio value at more than $5.1 million.

Enrich’s LinkedIn profile lists him as a director of RodinaUSA, while Rodina’s LinkedIn profile notes it is a private investment firm and family office based in Mexico City.

Andres Chico, a cofounder and managing director of Rodina, currently serves as a board director of Rubicon. According to the biography posted on Rubicon’s website, Chico has served on Rubicon’s board since prior to the August 2022 completion of Rubicon’s business combination with Founder SPAC.

Chico also serves as co-chair of the board of Mexico City-based Tortuga Resorts and RLH Properties, also based in Mexico City.