Business
Organto to Amend and Extend Its 2020 Series of Convertible Debentures
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATE...
About this update from Organto Foods, Inc.
[{"type":"text","content":"Organto to Amend and Extend Its 2020 Series of Convertible DebenturesNOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATESOrganto Also Announces A Private Placement Of New Convertible DebenturesVANCOUVER, BC and BREDA, the NETHERLANDS / ACCESSWIRE / December 13, 2022 / Organto Foods Inc. (TSXV:OGO)(OTC PINK:OGOFF)(FSE:OGF) (\"Organto\" or \"the Company\"), a leading provider of organic and value-added organic fruit and vegetable products, today announced that it plans to amend and extend some of the terms of its previously issued 2020 convertible debentures, subject to the election of the individual debenture holders. The Company is also announcing that given current investor demand, it plans to raise up to $500,000 by way of a private placement of new 2022 convertible debentures.Original 2020 Convertible Debenture TermsIn December 2020 and January 2021, Organto issued a total of $3,666,850 of convertible debentures. The debentures bear interest at 8% which is paid in cash, annually in arrears, and have a term of two years. The holders have the option to convert these debentures into common shares of Organto at a price of $0.30 per share. Should the closing price of the Organto shares equal or exceed $0.45 per share for 10 consecutive trading days on the TSX Venture Exchange, Organto has the option to convert the debentures into common shares at a price of $0.45 per share.To date, $522,000 of the debentures have been converted into 1,739,995 common shares and $41,000 of the debentures were repaid in cash. There are currently debentures with a total face value of $3,103,850 outstanding.Amended 2020 Convertible Debenture TermsSubject to acceptance by the TSX Venture Exchange, and at the discretion of the individual debenture holders, the Company will amend the interest rate of the 2020 convertible debentures to 10% and extend their term by 2 years, resulting in new maturity dates of December 2024 and January 2025. Terms of conversion will remain unchanged at $0.30 if converted by the holder and $0.45 if forced by the Company. Insiders of the Company who in aggregate hold $529,450 of the convertible debentures have agreed to the new amended terms.Concurrent Private Placement of 2022 Convertible DebenturesThe Company has received significant interest in a new convertible debenture financi...