Business
Organto Announces Plans to Strengthen Balance Sheet and Provides Business Update
TORONTO, ON and BREDA, NETHERLANDS / ACCESSWIRE / December 29, 2023 / Organto Foods Inc. (TSX-V:O...
About this update from Organto Foods, Inc.
[{"type":"text","content":"Organto Announces Plans to Strengthen Balance Sheet and Provides Business UpdateTORONTO, ON and BREDA, NETHERLANDS / ACCESSWIRE / December 29, 2023 / Organto Foods Inc. (TSX-V:OGO)(OTCQB:OGOFF) (‘Organto\" or the \"Company\"), a leading provider of organic and non-GMO fruit and vegetable products today announced plans to strengthen its balance sheet and continue its path to positive EBITDA in 2024.Organto has experienced sustained growth over the past five years, growing sales from approximately $1.5 million in 2018 to approximately $28.0 million in 2023, representing five consecutive years of sales growth versus the prior year and nineteen consecutive quarters of sales growth, currency adjusted, versus the same quarter in the prior year. The Company continues to see numerous growth opportunities as consumers focus on healthy eating and healthy living and is targeting continued growth driven by a combination of internal growth and acquisition.Organto continues to leverage its positioning in the organic foods value chain connecting growers around the world with premium markets, while at the same time having a positive ESG impact. In doing so the Company continues to refine its internal processes, product lines, supply chains and go-to-market strategies with the goal of increasing sales and gross margins while reducing ongoing operating costs. These initiatives are key for the Company and as a result Organto expects to achieve positive EBITDA results during the first half of 2024.Balance Sheet Improvement - Convertible Notes & DebenturesIn an effort to reduce debt and increase equity, the Company is working with its existing convertible note and debenture holders (\"Convertible Note and Debenture Holders\") holding Series 2024 10% notes (\"Convertible Notes\") and Series 2026 8% debentures (\"Convertible Debentures\") to convert a portion of the existing Convertible Notes and Convertible Debentures into common shares of the Company. The Convertible Notes were issued in December 2022 (see January 26, 2023 news release), February 2023 (see February 24, 2023 new release) and March 2023 (see March 23, 2023 and April 3, 2023 news releases). The Convertible Debentures were issued in November 2021 (see November 12, 2021 news release).The Company is targeting to realize a significant reduction in convertible debenture debt on i...