VANCOUVER, BC / ACCESSWIRE / March 13, 2020 / Organto Foods Inc. (TSXV:OGO)(OTC:OGOFF) ("Organto" or the "Company"), Organto today confirmed that it has closed the previously announced bridge debt financing ("Bridge Debt Financing") for a total amount of CDN$419,100.
The Bridge Debt Financing of secured promissory notes were issued to certain arm's length and non-arm's length lenders. The secured promissory notes will mature between April 3, 2020 and June 13, 2020, unless mutually extended, and bear interest at a rate of 12% per annum with interest due at maturity. There is no pre-payment penalty and no finder's fees or commissions were paid. The lenders will receive 2,135,764 warrants with each warrant being exercisable for a period of twelve months at an exercise price of CDN$0.065 per share. Any shares issued upon the exercise of the warrants will be subject to a hold period expiring June 26, 2020. The promissory notes are secured by shares of Xebra Brands Ltd. which are currently owned by Organto.
The funds have been used for general working capital purposes and other growth initiatives and opportunities.
Chair and Interim Chief Executive Officer
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Organto's business model is rooted in its commitment to sustainable business practices focused on environmental responsibility and a commitment to the communities where it operates, its people and its shareholders. The Organto Foods Group is an integrated provider of year-round value-added branded organic vegetables and seasonal organic and non-GMO fruit and vegetable products using an asset-light business model to serve a growing socially responsible and health conscious consumer around the globe.
FORWARD LOOKING 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 intention to use the funds from the Bridge Debt Financing for general working capital purposes and other growth initiatives and opportunities; 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; 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, unfavorable 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; ongoing relations with distributors, customers, employees, suppliers, consultants, contractors and partners and joint venturers; and risks associated with cannabis operations and receipt of required licenses in Colombia. The foregoing list is not exhaustive and Organto undertakes no obligation to update any of the foregoing except as required by law.
SOURCE: Organto Foods Inc.
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