Organto Closes $5.2 million in Over-Subscribed Private Placement Financing; Announces Proposed New Board Members
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Vancouver, B.C. (FSCwire) - Organto Foods Inc. (OGO: TSX-V, OGOFF: OTC) (“Organto”) is pleased to announce the closing of the 3rd and final tranche of its previously announced non-brokered private placement. Gross proceeds of approximately $2,934,750 were raised in the 3rd tranche from the sale of 19,565,000 units at a price of $0.15 per unit. Each unit consists of one common share and one non-transferrable warrant to purchase one additional common share of Organto, exercisable at a price of $0.25 for a period of 24 months from the closing date. Organto was over-subscribed for the private placement and raised a combined gross total of $5,163,531 before costs and finders’ fees, well above the $3.45 million announced on May 11, 2017. Of the total proceeds, $446,000 was used to retire existing debt.
“We are thrilled to welcome our new shareholders to the Organto family,” commented Mr. Arnoud Maas, CEO. “As we continue to advance our year-round vertically integrated business model in branded organic value-added vegetables we believe this funding will be instrumental in increasing our supply to meet market demand through additional strategic third-party supply relationships, combined with the continued development of our infrastructure to meet this demand,” added Mr. Maas.
Organto also announces that it will hold its Annual General Meeting on September 27, 2017. At that meeting shareholders will be asked to increase the size of the Board of Directors from 5 to 6 members. The Board is proposing the additions of Mr. Arnoud Maas, CEO, Steve Bromley, currently a Strategic Advisor, and Mr. Claudio Schreier. All bring extensive food, retail and business development experience to Organto. Mr. Marcus Meurs and Mr. Peter Gianulis are not standing for re-election. The bios of Arnoud Mass, Steve Bromley, and Claudio Schreier can be viewed at the following link:
www.organto.com/images/agm/proposed-bios.pdf
In the third tranche of the private placement, Organto paid finders’ fees of 8% in cash totaling $176,400 and issued 8% in non-transferrable finders’ warrants exercisable to acquire up to 1,176,000 common shares of Organto for a period of 24 months from the closing date, at a price of $0.15 per share. In total, Organto paid finders’ fees totaling $262,676 in cash and issued non-transferrable finders’ warrants exercisable to acquire up to 1,751,173 common shares of Organto for a period of 24 months from the closing date at a price of $0.15 per share.
The shares, warrants and finder’s warrants are subject to a four month hold period expiring on January 11, 2018.
ON BEHALF OF THE BOARD,
Arnoud Mass
CEO
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this news release.
For more information contact:
Investor Relations
604-634-0970
1-888-818-1364
info@organto.com
The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This news release does not constitute an offer of securities for sale, nor a solicitation for offers to buy any securities. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about Organto and its management, as well as financial statements.
This news release may include certain forward-looking information and statements, as defined by law including without limitation Canadian securities laws and the “safe harbor” provisions of the US Private Securities Litigation Reform Act of 1995 (“forward-looking statements”). In particular, and without limitation this news release contains forward-looking statements respecting Organto’s intended use of proceeds raised from the private placement to increase product supply and build infrastructure; Organto’s business model and markets; management’s beliefs, assumptions and expectations; and general business and economic conditions. Forward-looking statements are based on a number of assumptions that may prove to be incorrect, including without limitation assumptions about the following: the ability and time frame within which Organto’s business model will be implemented and product supply will be increased; cost increases; dependence on suppliers, partners and contractual counter-parties; changes in the business or prospects of Organto; unforeseen circumstances; risks associated with the organic produce business generally, including inclement weather, unfavourable growing conditions, low crop yields, variations in crop quality, spoilage, import and export laws and similar risks; transportation costs and risks; general business and economic conditions; and ongoing relations with distributors, customers, employees, suppliers, consultants, contractors, partners and joint venturers. The foregoing list is not exhaustive and Organto undertakes no obligation to update any of the foregoing except as required by law.
To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/Organto09122017.pdf
Source: Organto Foods Inc. (TSX Venture:OGO, OTC Pink:OGOFF)
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