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Organto Foods Inc
Symbol OGO
Shares Issued 147,863,395
Close 2018-11-07 C$ 0.16
Market Cap C$ 23,658,143
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Organto enters supply deal for organic vegetables

2018-11-07 11:19 ET - News Release

Mr. Steve Bromley reports

ORGANTO ADDS STRATEGIC SUPPLY PARTNER FOR VALUE-ADDED ORGANIC VEGETABLES

Organto Foods Inc. has entered into a long-term strategic supply relationship with an established supplier of conventional and organic fruits and vegetables operating in Zimbabwe.

Under the terms of the five-year agreement, Organto will have exclusive sales rights for all organic products produced by the supply partner and will initially focus on Organto's value-added year-round organic vegetables, including organic green beans, organic snow peas and organic sugar snaps. Delivery of these products is expected to commence in late December, 2018. An annualized revenue potential of over $5-million is expected at current forecast production rates, with significant expansion possible, subject to the availability of additional organic acreage.

Aligned with Organto's strategic business model, as well as a second phase to this strategic relationship, Organto also plans to add organic soft fruits, such as organic blueberries and blackberries, and other organic vegetables, including organic asparagus tips, for delivery in the second half of 2019.

"We are excited to work with our new supply partner as we expand our sourcing and supply platform for our core year-round value-added branded vegetable products," commented Steve Bromley, chair and interim chief executive officer of Organto Foods. "We have been challenged in the past by supply/demand imbalances on these products, so we are pleased to add this strategic supply source to our year-round platform."

The addition of this new supply source is part of Organto's strategy to expand its value-added organic vegetables and fruits product offering. Organto continues to increase its supply capabilities via the addition of new supplier relationships focused on organic soft, tropical, and exotic fresh fruits and other organic vegetables in order to diversify its revenue streams beyond just high-value organic vegetables. Organto intends to continue to establish supply relationships with strategic growers in key supply markets in order to expand market presence and develop opportunities for Organto's I am Organic-branded products as well as private label and distributed product offerings.

About Organto Foods Inc.

Organto is an integrated provider of year-round value-added branded organic vegetables and seasonal organic and non-GMO-(genetically modified organism) fruit and vegetable products, serving an increasingly socially responsible and health-conscious consumer around the globe. Organto employs a business model that is integrated from the table to the field. Driven by consumer demand for healthy and organic food products, it operates an integrated business model with sourcing, logistical and processing capabilities, providing complete traceability from the table back to the field. Operations are currently located in Guatemala, the Netherlands and the United States, as well as third party supply from a variety of regions, with plans to continue to expand supply capabilities through strategic third party growers and processors in Africa, Mexico and other growing regions.

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