Organto Raises $1.9 Million from First Tranche Closing
NOT FOR DISSEMINATION IN THE UNITED STATES OR TO UNITED STATES NEWSWIRE SERVICES
Vancouver, B.C. (FSCwire) - Organto Foods Inc. (OGO: TSX-V, OGOFF: OTC) (“Organto”) is pleased to confirm that it has closed the first tranche of its previously announced non-brokered private placement. Gross proceeds of approximately $1,904,000 were raised from the sale of 12,699,634 units at a price of $0.15 per unit. Each unit consists of one common share and one 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 expects to close a second tranche of the private placement in July 2017.
The proceeds of the first tranche will be used primarily to accelerate the roll-out of Organto’s vertically integrated value added fresh-cut, branded organic produce business. Organto currently employs a business model that is integrated from the “table to the field”, addressing growing consumer demand for fresh and healthy food products. The current funding will accelerate the development of increased supply to meet market demand via both company operated operations and strategic third party supply relationships.
In connection with the first tranche closing, Organto paid 8% finder’s fees to two finders totaling $73,075.99 and issued 8% non-transferrable finders’ warrants exercisable to acquire up to 487,173 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 October 21, 2017. The private placement is subject to the final approval of the TSX Venture Exchange (the “TSX-V”).
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 the company and 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 the expected time frame to close a second tranche of the private placement, if any; the company’s intended use of proceeds raised from the private placement to increase product supply; Organto’s business model; 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/Organto06212017.pdf
Source: Organto Foods Inc. (TSX Venture:OGO, OTC Pink:OGOFF)
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