Organto Announces Release of Annual Filings and Provides an Update to its Corporate Strategy

Vancouver, B.C. (FSCwire) - Organto Foods Inc. (TSX-V: OGO, OTC: OGOFF) (“Organto” or “the Company”), a vertically integrated provider of value-added branded organic vegetables, today announced that it has released its Annual Filings and made key changes to its corporate strategy, given the disappointing results of the 2017 operating year.

Organto plans to expand its value-added organic vegetables product offering and supply capabilities via the addition of expanded supply relationships focused on organic soft, tropical and exotic fresh fruits and other organic vegetables.  It is expected this will deepen supply relationships with strategic growers in key supply markets, expanding market presence and developing opportunities for new value-added Organto “I am Organic” branded product offerings. In hand with expanding supply relationships, Organto is also streamlining parts of its cost base, moving from a fixed to variable cost structure to better align costs with revenues as the business scales. 

“We continue to believe in our value-added organic vegetable proposition and strategy and believe our expanded approach to supply will be key in addressing the supply challenges we have experienced.” commented Steve Bromley, Chair and Interim CEO.  “We are working hard to get the proper supply/demand balance and the next six months will be critical for us to get these dynamics right.” added Mr. Bromley. 

Revenues for the fourth quarter and 2017 financial year did not meet expectation as Organto completed trials, optimized processes, attained organic certifications, refined operations and developed third-party supply relationships, all in support of the build-out of year-round supply capabilities.  In addition, supply issues from third-party growers created a supply/demand imbalance that significantly impacted commercial volumes and related costs, especially in the latter half of the year.

Full details are available in our audited annual financial statements for the year ended December 31, 2017 and the accompanying Management's Discussion & Analysis which have been filed and are available at www.sedar.com and on our website at www.organto.com.

Organto also announces the completion of bridge financings which closed in a series of tranches from February 2018 through April 2018 for proceeds of approximately CDN $820,000 from bridge loans with related parties.  The bridge loans are unsecured and have a term of one year, with interest rates ranging from 0% to 8%, payable at the end of the one-year term.

ON BEHALF OF THE BOARD,

Steve Bromley

Chair and Interim 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

604-634-0970

1-888-818-1364

info@organto.com

About Organto

Organto is a vertically integrated provider of year-round value-added branded organic produce serving a growing socially responsible and health conscious consumer around the globe. Organto employs a business model that is integrated from the “table to the field”.  Driven by consumer demand for healthy and organic food products, it operates an integrated business model with logistical, processing and growing capabilities, providing complete traceability from the table back to the field. Operations are currently located in Guatemala, The Netherlands and the USA, as well as  third-party supply from Africa and Peru, with plans to continue to expand year-round supply capabilities via strategic third-party growers and processors in Africa, Mexico and other growing regions. 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 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 vertically integrated year-round supply capabilities and plans to continue to develop and expand these capabilities; plans to streamline parts of its cost base; 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.

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