Organto Announces Sale of Three European Subsidiaries

About this update from Organto Foods, Inc.

[{"type":"text","content":"Organto Announces Sale of Three European SubsidiariesVANCOUVER, BC and BREDA, NETHERLANDS / ACCESSWIRE / June 5, 2024 / Organto Foods Inc. (TSXV:OGO)(OTCQB:OGOFF) (\" Organto \" or the \" Company \"), a leading provider of organic and non-GMO fruit and vegetable products today announced that it has entered into a definitive agreement, and has received conditional approval from the TSX Venture Exchange, to sell three of its wholly owned Dutch operating subsidiaries (the \"Sale Subsidiaries\") to an independent third-party purchaser (the \"Purchaser\"), with the objective of improving the Company's financial position and path to profitability by streamlining operations. This divestiture is part of the Company's efforts to reposition its business and strengthen its balance sheet.Amounts stated are in Canadian dollars unless otherwise noted and results from operations are unaudited.The Sale Subsidiaries are comprised of:Organto Europe BV (\"Organto Europe\");Fresh Organic Choice BV (\"FORC\"); andBeeOrganic BV (\"BeeOrganic\").The Company will continue to own and operate its remaining subsidiaries, including NFG New Fruit Group GmbH (\"NFG\"), which the Company acquired in January 2023, and which will become the Company's key operating entity following the proposed transaction. NFG has been operating since 2019 and is a fully certified organic products supplier with a European sales focus and a strong retail customer base. NFG has global supply relationships with established grower partners and focuses on organic and non-GMO bananas, avocados, ginger and mangos.The Purchaser will acquire all the outstanding shares in the capital of each the Sale Subsidiaries for Euro 1 and assume all of the Sale Subsidiaries' assets and liabilities, which represented a net liability position of approximately $4.2 million as at March 31, 2024.Historically, the Sale Subsidiaries had been key sales contributors, but this has significantly declined recently due to a combination of inadequate working capital to fund operations and lost business due to competitive pressures.Organto engaged Evans & Evans, Inc. (\"Evans & Evans\"), a boutique financial advisory firm based in Vancouver, to complete an independent valuation and fairness opinion for the proposed transaction (the \"Valuation\").[1] The valuation methodology utilized by Evans & Evans...

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