VANCOUVER, Oct. 26, 2018 /CNW/ - Organto Foods Inc. (TSX-V: OGO, OTC: OGOFF) ("Organto" or "the Company"), an integrated provider of value-added organic vegetables and fruits today announced its intention to complete a non-brokered private placement of 11,000,000 units of Organto ("Units") at a price of $0.10 per unit for gross proceeds of up to CDN $1,100,000. Each Unit will consist of one common share and one-half warrant exercisable to purchase one additional Organto common share at a price of CDN $0.20 for a period of 18 months after the closing date. The exercise date of the warrants will be subject to acceleration in the event that the closing price of Organto's common shares on the TSX Venture Exchange, or such other stock exchange on which Organto common shares are primarily traded from time to time, is greater than or equal to CDN $0.25 per share for a period of 10 consecutive trading days (an "Acceleration Event") and such Acceleration Event occurs any time after the expiration of the Hold Period (as hereinafter defined).
Organto intends to use the proceeds of the private placement to fund ongoing operations, to meet working capital requirements and for general corporate purposes. Organto reserves the right to re-allocate funds from time to time in accordance with company requirements.
All securities issued pursuant to the private placement are expected to be subject to a four month hold period (the "Hold Period"). The private placement is subject to the acceptance of the TSX-V.
ON BEHALF OF THE BOARD,
Steve Bromley
Chair and Interim Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
ABOUT ORGANTO
Organto is an integrated provider of year-round value-added branded organic vegetables and seasonal organic and non-GMO fruit and vegetable products serving a growing 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 USA, as well as third-party supply from a variety of regions, with plans to continue to expand supply capabilities via strategic third-party growers and processors in other growing regions. Organto's business model is rooted in its commitment to sustainable business practices focused on environmental responsibility and a commitment to the communities where it operates, its people and its shareholders.
SOURCE Organto Foods Inc.
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