Business
Organto Closes Over-Subscribed CDN $4.6 Million Convertible Note Financing
Funding To Be Used To Capitalize on Accelerating Growth Opportunities VANCOUVER, BC and...
About this update from Organto Foods, Inc.
[{"type":"text","content":"Organto Closes Over-Subscribed CDN $4.6 Million Convertible Note FinancingFunding To Be Used To Capitalize on Accelerating Growth Opportunities VANCOUVER, BC and BREDA, NETHERLANDS / ACCESSWIRE / January 7, 2021 / Organto Foods Inc. (TSXV:OGO)(OTC PINK:OGOFF)(FSE:OGF) (\"Organto\" or \"the Company\"), an integrated provider of organic and value-added organic fruits and vegetables today announced the closing of its recently announced non-brokered private placement of convertible notes (\"Convertible Notes\"). The financing was significantly over-subscribed with gross proceeds of CDN $4,630,000 including strong participation from insiders and existing shareholders as well as a diverse group of investors located in Canada, Mexico, and for the first time in the Netherlands. Proceeds from the financing will be used primarily to fund Organto's planned business development initiatives plus capitalize on further accelerating growth opportunities.\"We are extremely pleased to close this financing, which was very well received and over-subscribed. The proceeds will be used to fund our aggressive growth plans including achieving our previously announced target revenues for fiscal 2021 of CDN $35 to $37 million, an approximate 200% increase over 2020, including an expected annualized revenue run rate of CDN $50 million by the end of 2021.\" commented Steve Bromley, Chair and Co-CEO and Rients van der Wal, Co-CEO and CEO of Organto Europe BV. \"We believe that demand for fresh organic fruits and vegetables will continue to grow globally, driven by increased consumer interest in healthy foods that are produced in a sustainable and transparent manner, and this presents an exciting opportunity for Organto. We continue to make great progress, leveraging both the strong market demand and our cost effective and flexible business model to drive record results.\"The Convertible Notes issued as part of this financing have a term of 2 years maturing in December 2022 and January 2023. The Notes carry an annual interest rate of 8% (payable annually), and are convertible into common shares of Organto (TSXV:OGO) at a price of CDN $0.30 per share. If at any time after four months from the date of issuance of the Notes, the closing price of Organto's common shares as traded on the TSX Venture Exchange is equal to or greater than CDN $0.45 for 10 consecutive...