Increases Guidance to CDN $4.9 to $5.0 Million From Previously Announced CDN $4.4 to $4.6 Million
VANCOUVER, BC and BREDA, THE NETHERLANDS / ACCESSWIRE / January 27, 2021 / Organto Foods Inc. (TSXV:OGO)(OTC PINK:OGOFF)(FSE:OGF) ("Organto" or "the Company"), an integrated provider of fresh organic and value-added organic fruits and vegetables today increased its Q-4 2020 revenue guidance to CDN $4.9 to $5.0 million versus the previously provided (news release dated December 10, 2020) guidance in the range of CDN $4.4 to $4.6 million. The increased revenues were driven by a combination of stronger than expected market demand and increasing supply and represent the largest quarterly revenues in the history of Organto.
Q-4 2020 Highlights
- Forecast Q-4 2020 revenues:
- increased to CDN $4.9 to $5.0 million versus previous guidance of CDN $4.4 to $4.6 million.
- an increase of over 200% versus the same quarter in the previous year.
- the largest quarterly revenues in the history of Organto.
- Forecast Fiscal 2020 revenues:
- increased to CDN $11.4 to $11.5 million
- an increase of over 200% versus record revenues in Fiscal 2019
- the largest annual revenues in the history of Organto.
- December 2020 revenues:
- approx. CDN $2.3 million
- the largest monthly revenues in the history of Organto.
- an annualized revenue exit run rate in excess of CDN $25 million.
"We are very pleased with the continued growth in our business as we expand our supply sources and customer base in response to growing demand for fresh organic fruits and vegetables. Our distribution continues to expand and we are now servicing thirteen countries in Europe, with product sourced from four continents including Europe, North and South America and Africa." commented Rients van der Wal, Co-CEO and CEO of Organto Europe B.V. "We believe that consumer focus on health and wellness, combined with strong demand for foods sourced in a sustainable and transparent manner, positions our product offering for continued substantial growth. We have been making great progress on our strategy of building an ethics-driven one-stop shop in fresh organic and specialty fruits and vegetables, and this is accelerating as we execute on our strategies and prepare for the rollout of our I AM Organic branded retail product catalog in 2021." added Mr. van der Wal.
Approval of Restricted Share Unit Plan
Organto also announced today that the TSX-V has accepted the terms of the Company's Restricted Share Unit Plan (the "Plan"). The Plan was approved by dis-interested shareholders at the Company's Annual General Meeting held on December 3, 2020. The Company has issued 1,225,000 shares to directors as part of the annual director compensation program and in accordance with the terms of the Plan, with 25% vesting immediately and 25% each six months thereafter.
Stock Option Grants
Organto also announced that it has granted 2,200,000 stock options to directors, officers and employees as per the terms of the Company's Share Option Plan. 300,000 of the options were granted to a director with an exercise price of CDN $0.18 and 300,000 were granted to a director with an exercise price of CDN$ 0.265. All options granted to directors vest 25% immediately and 25% every six months thereafter. 1,600,000 options were granted to officers and employees at an exercise price of $0.265 with 20% vesting immediately and 20% on each anniversary thereafter. All the options granted have a term of five years.
ON BEHALF OF THE BOARD,
Steve Bromley
Chair and Co-Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
For more information contact:
Investor Relations
info@organto.com
ABOUT ORGANTO
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. Organto is an integrated provider of private label and bulk distributed 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 business model and markets; Organto's belief that based on progress in the business and expected future results the business is well positioned for continued growth; Organto's belief that demand for fresh organic fruits and vegetables continues to grow; Organto's belief that it will realize Q-4 revenues of CDN $4.9 to $5.0 million, annualized revenues of CDN $11.4 to $11.5 million and an annualized revenue exit run rate in excess of CDN $25 million; Organto's belief that its business is accelerating and it is executing on its strategies and plans to rollout the I AM Organic brand in 2021; 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, 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; and ongoing relations with distributors, customers, employees, suppliers, consultants, contractors and partners. 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.
View source version on accesswire.com:
https://www.accesswire.com/626155/Organto-Increases-Record-Q-4-2020-Revenue-Guidance
