Business
Organto Closes First Tranches of Convertible Note and Equity Financings
Not for Distribution to U.S. Newswire Services or for Dissemination in the United States ...
About this update from Organto Foods, Inc.
[{"type":"text","content":"Organto Closes First Tranches of Convertible Note and Equity FinancingsNot for Distribution to U.S. Newswire Services or for Dissemination in the United StatesExpects to Achieve CDN$20 Million Annualized Revenue and Cash-Flow Breakeven Run Rates This YearVANCOUVER, BC / ACCESSWIRE / May 26, 2020 / Organto Foods Inc. (TSXV:OGO)(OTC:OGOFF) (\"Organto\" or the \"Company\"), an integrated provider of organic and value-added fruits and vegetables today announced the closing of the first tranches of its previously announced non-brokered Convertible Note and Equity Financings. A total of CDN $1,420,300 was included in the first tranche closing with CDN $720,300 raised via the Convertible Note option and CDN $700,000 via the Equity Financing option.\"We are extremely pleased by and thankful for the excellent response we have received on our previously announced financings. We are confident that the closing of these first tranches, combined with expected further closings, will allow us to leverage the progress we have made in our business and position us for continued exciting growth in the fast-growing healthy eating and organic foods markets. We have now realized three consecutive quarters of record revenues and gross profit, clearly demonstrating the benefits of our repositioned asset-light business model, and as a result are poised to significantly accelerate our growth.\" commented Steve Bromley, Chair and Interim CEO of Organto Foods Inc. \"Demand for fresh organic fruits and vegetables continues to grow and has done so even during the recent COVID-19 global pandemic, with growth being driven in part by increased consumer interest in healthy foods that are produced in a sustainable and transparent manner. We believe our cost-effective and flexible business model has proven its value and believe we are now strongly positioned going forward. The funds from the financings will be used to expand our supply and product offerings, accelerate growth, and position our business to ramp up to an annualized revenue rate of CDN $20 million by the end of 2020 while at the same time achieving cash-flow breakeven by year-end, both key milestones in our strategic plan.\"The Company also announced that it has received confirmation that Accendo Banco (\"Accendo\"), a current strategic investor and lender to Organto, will be participating in this fin...