Business
Organto Secures Euro2 Million Factoring Facility with Eurofactor, a Division of Credit Agricole Group
Larger, Lower-Cost Facility to Facilitate Expected Business Growth VANCOUVER, BC and BRE...
About this update from Organto Foods, Inc.
[{"type":"text","content":"Organto Secures €2 Million Factoring Facility with Eurofactor, a Division of Credit Agricole GroupLarger, Lower-Cost Facility to Facilitate Expected Business GrowthVANCOUVER, BC and BREDA, NETHERLANDS / ACCESSWIRE / March 24, 2022 / Organto Foods Inc. (TSXV:OGO)(OTCQB:OGOFF)(FSE:OGF) (\"Organto\" or \"the Company\"), a leading provider of organic and value-added organic fruit and vegetable products, today announced that Organto Europe B.V. has secured a €2 million (approximately CDN$ 2.8 million) factoring facility with Eurofactor, a Division of Credit Agricole Group.Operating since 1988, Eurofactor is headquartered in Munich, Germany, and is a Division of Credit Agricole Group, a leading global bank headquartered in France. The new facility increases the amount of credit available and reduces borrowing costs versus the previous facilities.Highlights:New €2 million facility more than doubles the size of the previous facilitySignificantly reduced borrowing costs with expected costs savings of approximately 40%-50% as compared to the previous facilityIncreased flexibility and efficiency in working capital managementRients van der Wal, Co-CEO of Organto Foods Inc. and CEO of Organto Europe B.V. commented, \"As we have rapidly grown our business in 2021 and successfully launched our \"I AM Organic\" brand, we felt it necessary to enhance our capital structure in order to more efficiently manage the growth we anticipate in 2022. This new facility will expand our borrowing capacity at lower costs, enabling us to take advantage of growth opportunities and execute further launches of the \"I AM Organic\" brand with new retail partners. The demand for sustainable, transparent fresh organic fruit and vegetables continues to grow rapidly, and we are excited to be building our business in this fast-growing category.\"Organto is an integrated provider of branded, private label, and distributed organic and non-GMO fruit and vegetable products serving growing global demand for healthy and socially responsible foods. Organto operates a strategic, flexible, and cost-efficient asset-light business model, sourcing products from five continents, and using its certification, supply chain, marketing, and distribution expertise to bring products to market in eighteen countries in Europe. Organto's flagship \"I AM Organic\" brand h...