Business
Organto Sells Non-Strategic Guatemalan Plant and Equipment
Organto Sells Non-Strategic Guatemalan Plant and Equipment Canada NewsWire VANCO...
About this update from Organto Foods, Inc.
[{"type":"text","content":"\n\n\n\nOrganto Sells Non-Strategic Guatemalan Plant and Equipment\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nVANCOUVER, March 27, 2019\n\n\n\nSale Aligns with Strategic Asset Light Organic Foods Business Model\n VANCOUVER, March 27, 2019 /CNW/ - Organto Foods Inc. (TSX-V: OGO, OTC: OGOFF) ('Organto\" or the \"Company\").  Organto today announced that it has entered into an agreement to sell the Company's processing plant and related assets including land, buildings and processing equipment (the \"Assets\") located in Patzun, Chimlatenango, Guatemala, to Organizacion de Marcadeo S.A., a company controlled by Arturo Bickford and Jorge Guzman Efrain (\"Omega\").  \nAs per the terms of the agreement, which is subject to final acceptance by the TSX Venture Exchange, Omega will acquire the Assets in an arm's length transaction on an \"as is\" basis for consideration of USD $857,934, or approximately CDN $1,125,000.  Consideration will be paid via the discharge of certain loans from Omega and related parties to Organto in the amount of CDN $404,095 (USD $314,647), cancellation of 5,873,257 common shares of Organto at a deemed price of CDN $0.11 per share or CDN $646,069, and the assumption of an interest-free note payable from Omega in the amount of CDN $74,836 (USD $56,628), due on the second anniversary of the closing date, and secured by a lien on the Assets. \n\"With the successful shift in our organic foods business to an asset light business model over the past number of months, we felt there was no longer a strategic benefit to Organto to maintain these assets.  As a result, we feel it is in the Company's best interests to dispose of these assets and put them into the hands of a party that is committed to the local growing area and economy.\" commented Steve Bromley, Chair and Interim Chief Executive Officer of Organto Foods Inc.  \"The disposal of this asset is expected to improve our balance sheet and reduce ongoing operating costs as we continue to focus on our asset light organic veget...