Mr. Steve Bromley reports
ORGANTO FOODS CLOSES $8.0 MILLION PRIVATE PLACEMENT FINANCING
Organto Foods Inc. has closed its previously announced non-brokered private placement of 16 million units of the company for gross proceeds of $8.0-million (see the news releases dated July 31, 2025, and Aug. 19, 2025).
The units were issued at a price of 50 cents per unit, with each unit consisting of one common share in the capital of the company and one-half common share purchase warrant of the company.
Each full warrant entitles the holder to acquire one common share at a price per warrant share of 75 cents for a period of 18 months from the closing date of the private placement, subject to acceleration.
The warrants are subject to the right of the company to accelerate the expiry date of the warrants to a date that is 30 days following dissemination of a news release announcing such acceleration if, at any time, after the closing date, the closing price of the company's common shares equals or exceeds $1 for a period of 10 consecutive trading days on the TSX Venture Exchange.
All securities issued pursuant to the private placement will be subject to a hold period of four months and one day from their date of issuance in accordance with applicable Canadian securities laws, as well as a 12-month contractual restriction on transfer commencing on the date of issuance and ending on the first anniversary of the date of issuance.
The company has agreed to pay finders' fees on the private placement, comprising fees payable in cash of 7.5 per cent of the gross proceeds or $600,000, plus an additional 7.5 per cent of the gross proceeds via the issuance of 1.2 million common share warrants, with an exercise price of 50 cents per common share warrant, exercisable for a period of 18 months from the closing of the private placement.
Net proceeds from the private placement are intended to be used to continue the growth of the company's organic and fair-trade fruit and vegetable products platform, to further develop the company's technology platform, and to support general working capital requirements, and may also be used to repay part of the company's short-term debt.
Completion of the private placement remains subject to the approval of the TSX Venture Exchange, as well as all other requisite corporate, regulatory and security holder approvals, as applicable.
Steve Bromley, co-chair and chief executive officer, commented: "I am very pleased to welcome this new supportive group of international investors and I would also like to thank our existing shareholders for their continued confidence. This financing strengthens our capital position and positions us to accelerate the expansion of our organic and fair-trade fruit and vegetable platform, all the while staying focused on growing our sales and distribution channels, improving our EBITDA margins, and pursuing strategic growth initiatives. With this support, we are well positioned to continue to grow our healthy products portfolio, drive stronger results, and also drive greater impact for our customers and communities."
About Organto Foods Inc.
Organto is an integrated provider of branded, private-label and distributed organic, fair-trade and non-GMO (genetically modified organism) fruit and vegetable products using a strategic asset-lighter business model to serve a growing socially responsible and health-conscious consumer around the globe. 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.
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