Business
Organto Updates Proposed Sale of Medicannabis S.A.S. and Clarifies Consideration to be Received
Organto Updates Proposed Sale of Medicannabis S.A.S. and Clarifies Consideration to be Rec...
About this update from Organto Foods, Inc.
[{"type":"text","content":"\n\n\n\nOrganto Updates Proposed Sale of Medicannabis S.A.S. and Clarifies Consideration to be Received\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\n\n\n\n\n\n\nCanada NewsWire\nVANCOUVER, Oct. 8, 2019\n\n\n\nVANCOUVER, Oct. 8, 2019 /CNW/ - Organto Foods Inc. (TSX-V: OGO, OTC: OGOFF) ('Organto\" or the \"Company\"). On June 27, 2019 Organto announced that it had entered into a Share Purchase Agreement to sell its wholly owned subsidiary Medicannabis S.A.S., (\"Medicannabis\"), a Colombian company focused on the development of medicinal cannabis, to Xebra Brands Ltd. (\"Xebra\") for a combination of shares of Xebra, cash and forgiveness of debt, with proceeds being used by the Company to expand its food business. This transaction allows Organto to continue to have an investment in the rapidly growing cannabis sector while focusing operationally on its core organic fruit and vegetables business. \nFurther to its news release of June 27, 2019 (the \"June 27 Release\") Organto wishes to clarify the disclosure relating to the cash consideration payable to Organto in connection with the sale of Medicannabis to Xebra Brands Ltd.\nNotwithstanding the relevant disclosure in the June 27 Release relating to the cash portion of the overall consideration payable to Organto by Xebra, Organto advises that it will receive cash proceeds of CDN $321,077 and promissory notes totalling CDN $600,000 due by Organto to Xebra will be forgiven. The CDN $321,077 represents CDN $500,000 of total cash consideration payable under the Agreement (as detailed in the June 27 Release) less cash advances of CDN $187,023, which amount is included in the CDN $600,000 of promissory notes being forgiven. The CDN $187,023 is being deducted from the CDN $500,000 otherwise due as it represents advances which were not used to fund cannabis operations, and Xebra had only agreed to forgive advances used to fund such operations.\nThe transaction remains subject to shareholder and TSX-V approval which the Company is currently seeking.\nON BEHALF OF THE BOARD\nSteve BromleyChair and Interim Chief Executive Officer\nNeither t...