Business
Organto Announces C$400,000 Bridge Debt Financing
VANCOUVER, BC / ACCESSWIRE / January 10, 2020 / Organto Foods Inc. (TSXV:OGO)(OTC:OGOFF) (&...
About this update from Organto Foods, Inc.
[{"type":"text","content":"Organto Announces C$400,000 Bridge Debt FinancingVANCOUVER, BC / ACCESSWIRE / January 10, 2020 / Organto Foods Inc. (TSXV:OGO)(OTC:OGOFF) (‘Organto\" or the \"Company\"), an integrated provider of value-added fruits and vegetables today announced a bridge debt financing (\"Bridge Debt Financing\") of up to CDN$400,000 secured promissory notes to certain arm's length and non-arm's length lenders.Organto intends to close the financing on January 15, 2020. The Bridge Debt Financing will mature April 3, 2020, and bear interest at a rate of 12% per annum with interest due at maturity. The lenders will receive up to 2,051,280 warrants (assuming all C$400,000 bridge debt financing is placed) with each warrant being exercisable for a period of twelve months at an exercise price of CDN$0.065 per share. Any shares issued upon the exercise of the warrants will be subject to a hold period of four months starting from the date of issuance of the warrants in accordance with applicable securities laws. The promissory notes will be secured by shares of Xebra Brands Ltd. currently owned by Organto.Organto does not expect to pay any finder's fees or commissions associated with this Bridge Loan Financing and there is no penalty for early repayment.The funds will be used for general working capital purposes and other growth initiatives and opportunities.Issuance of the promissory notes and warrants remains subject to the final acceptance of the TSX Venture Exchange.Steve BromleyChair and Interim Chief Executive OfficerNeither 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.For more information contact:Investor [email protected] ORGANTOOrganto'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. The Organto Foods Group is an integrated provider of year-round value-added branded organic vegetables and seasonal organic and non-GMO fruit and vegetable products using an asset-light business model to serve a growing socially responsible and health conscious consumer around the globe.FORWARD LOOKING STATE...