Mr. Steve Bromley reports
ORGANTO FOODS ARRANGES NEW FINANCING AND FOREIGN EXCHANGE FACILITIES WITH RABOBANK
Organto Foods Inc.'s European foods operations have entered into an integrated financial and foreign exchange solution with Cooperatieve Rabobank UA, based in the Netherlands.
Steve Bromley, co-chair and chief executive officer, commented: "We are extremely pleased to have entered into these facilities with a premier bank who has deep roots in the agricultural and foods sectors. We have experienced significant growth in our business as we serve fast-growing healthy eating and healthy living markets, and we believe there are significant opportunities to further accelerate this growth into the future. These new financial and foreign exchange facilities will help fund this future growth, and together with our current strong balance sheet, further positions our company for an exciting future."
The new financial and foreign exchange facilities include a four-million-euro flexible financial financing facility, with utilization based on a percentage of qualified accounts receivable, with potential for expansion as the company's business grows. Any funds borrowed will bear interest at the one-month Euribor (euro interbank offered rate) rate plus a pre-established margin. An annual standby fee will be charged on the average unused portion of the facility. In addition, the foreign exchange facility includes access to the Rabobank Easy FX platform and provides foreign exchange hedging at competitive rates without the need for immediate margin calls.
Rabobank is a leading Dutch co-operative bank with deep roots in the agricultural and food sectors. The bank serves clients globally, focusing on sustainability and providing a full suite of financial services, including commercial and rural banking as well as asset management. Driven by the mission of growing a better world together, Rabobank partners with innovative, future-focused businesses throughout the food and agribusiness value chain.
"This new facility with Rabobank is an important milestone as this provides resources to continue to fuel our rapid growth and manage a key operational risk as we enter one of the most important contracting seasons of the year for our business. Securing a flexible working capital facility combined with an enhanced foreign exchange hedging facility allows us to continue to strengthen our position as a premier supplier of organic and fair-trade fresh produce, utilizing our integrated capital-efficient supply platform. As demand for fresh, sustainably produced and organic food products continues to grow, these facilities, combined with our current balance sheet strength, are key to ensuring we are well equipped to meet customer expectations, deepen supplier relationships in origin countries and capitalize on new growth opportunities," commented Bob Kouw, chief operating officer, global operations.
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-efficient 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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