Organto Confirms Amendments to Convertible Debentures and Cancellation of Debentureholder Meeting

About this update from Organto Foods, Inc.

[{"type":"text","content":"Organto Confirms Amendments to Convertible Debentures and Cancellation of Debentureholder MeetingTORONTO, ON and BREDA, NETHERLANDS / ACCESSWIRE / March 12, 2024 / 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 announces that as part of ongoing efforts to reduce debt and increase equity in the Company, that the holders (the \"Debentureholders\") of its 5 year, 8% convertible unsecured subordinated debentures, due November 30, 2026 with a face value of $8,050,000 (the \"Debentures\"), have approved proposed amendments (the \"Amendments\") to the indenture governing the Debentures between the Company and Computershare Trust Company of Canada, as debenture trustee (the \"Debenture Trustee\"), dated as of November 12, 2021 (as amended, the \"Indenture\"). The Debentureholders have authorized the Company and the Debenture Trustee to enter into a supplemental indenture (the \"Supplemental Indenture\") giving effect to the Amendments.Debentureholders representing 68.1% of the outstanding principal amount of the Debentures have provided consent in favour of an extraordinary resolution approving the Amendments, which exceeds the 66.7% threshold required under the Indenture. As a result, the meeting of Debentureholders scheduled for March 12, 2024, to consider the Amendments is no longer necessary and has been cancelled.Under the terms of the Amendments, Debentureholders have agreed to convert 50% of the principal balance of the Debentures into common shares of the Company at a conversion price of $0.30 per common share. The remaining 50% of the Debentures will continue under the following terms:(i) extension of the maturity date with 50% due one year later than the original maturity date of November 30, 2026, and 50% due two years later than the original maturity date; and(ii) interest originally due to be paid in the fourth quarter of 2023 will be deferred to align with the revised principal payment terms as noted in (i) above; and(iii) no change to the annual interest rate or the timing of any remaining interest payments; and(iv) amendment of the conversion price to $0.60 per common share and the accelerated conversion price will be amended to $0.90 per common share.The Company and the Debenture Trustee intend to execute and deli...

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