NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
VANCOUVER, BC / ACCESS Newswire / July 31, 2025 / Organto Foods Inc. (TSXV:OGO)(OTC PINK:OGOFF) ("Organto" or the "Company") is pleased to announce that it has arranged a non-brokered private placement of up to 14,000,000 units of the Company (the "Units") at a price of $0.50 per Unit (the "Private Placement") for gross proceeds of $7,000,000, with each Unit consisting of one common share in the capital of the Company (a "Common Share") and one-half common share purchase warrant of the Company (a "Warrant").
Each full Warrant shall entitle the holder thereof to acquire one Common Share (a "Warrant Share") at a price per Warrant Share of C$0.75 for a period of 18 months from the closing date of the Private Placement, subject to acceleration.
The Warrants will be subject to the right of the Company to accelerate the expiry date of the Warrants to a date that is 30 days following dissemination of a news release announcing such acceleration if, at any time, after the closing date, the closing price of the Company's common shares equals or exceeds $1.00 for a period of ten consecutive trading days on the TSX Venture Exchange.
The Company may pay finder's fees comprised of a cash commission of up to 7.5% of the gross proceeds of the Private Placement. The Company intends to use the net proceeds from the Private Placement to continue the growth of the Company's organic and fairtrade fruit and vegetable products and technology platform and for general working capital purposes.
Completion of the Private Placement will be subject to the prior approval of the TSX Venture Exchange as well as all other requisite corporate, regulatory and security holder approvals, as applicable.
Further, all securities issued pursuant to the Private Placement described above will be subject to a hold period of four months and one day from their date of issuance in accordance with applicable Canadian securities laws, as well as a twelve-month contractual restriction on transfer commencing on the date of issuance and ending on the first anniversary of the date of issuance.
ON BEHALF OF THE BOARD
Steve Bromley
Co-Chair and CEO
For more information, contact:
John Rathwell, Senior Vice President, Corporate Development
647 629 0018
info@organto.com
ABOUT ORGANTO
Organto is a leading provider of branded, private label, and distributed organic and non-GMO fruit and vegetable products using a strategic asset-lighter business model to serve a growing socially responsible and health-conscious consumers. 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.
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 ("forward-looking statements"). In particular, and without limitation, this news release contains forward-looking statements respecting the anticipated use of proceeds from the Private Placement and the potential payment of finder's fees. Forward-looking statements are based on a number of assumptions that may prove to be incorrect, including, without limitation, the assumption that the Company will be able to complete the Private Placement and obtain all regulatory and requisite approvals in a timely manner and on acceptable terms. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in forward-looking statements in this news release include, among others, regulatory risks; risks related to market volatility and economic conditions; risks related to unforeseen delays; and risks that necessary financing will be unavailable when needed. For further information on these and other risks and uncertainties that may affect the Company's business, see the "Risks and Uncertainties" and "Forward-Looking Statements" sections of the Company's annual and interim management's discussion and analysis filings with the Canadian securities regulators, which are available under the Company's profile at www.sedarplus.ca. Except as required by law, Organto does not assume any obligation to release publicly any revisions to forward-looking statements contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
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.
SOURCE: Organto Foods, Inc.
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/consumer-and-retail-products/organto-foods-announces-c7.0-m-private-placement-1055358
