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Organto Closes Fully Subscribed Private Placement Financing

V.OGO

Organto Closes Fully Subscribed Private Placement Financing

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.


Vancouver, British Columbia (FSCwire) - Organto Foods Inc. (TSX-V: OGO, OTC: OGOFF) (“Organto” or “the Company”), an integrated provider of value-added organic vegetable and fruit products today announced the closing of its previously announced non-brokered private placement. The placement was fully subscribed with gross proceeds of CDN $1.6 million being raised from the sale of 20,000,000 units of Organto (“Units”) at a price of $0.08 per Unit.  Insiders and strategic industry investors represented 53% of the amount raised.

Each Unit consisted of one common share and one-half warrant, with each full warrant exercisable to purchase one additional Organto common share at a price of $0.15 for a period of 12 months after the closing date. The exercise date of the warrants issued are subject to acceleration in the event that the closing price of Organto’s common shares on the TSX Venture Exchange is greater than or equal to $0.25 per share for a period of 10 consecutive trading days (an “Acceleration Event”) and such Acceleration Event occurs any time after the expiration of a four month hold period applicable to the securities issued.   

Organto also announced that it has received final acceptance from the TSX Venture Exchange for the previously announced early conversion of outstanding convertible debentures with a face value of CDN $2,035,000, plus accrued interest and related conversion fees, into common shares of Organto.    Under the terms of the agreement, Organto agreed to issue a total of 13,330,273 common shares to the holders of the debentures, representing 11,000,000 common shares issued to convert the face value of the Debentures at a conversion price of CDN $0.185 per common share, and 2,330,273 common shares to convert accrued interest and related conversion fees at a conversion price of CDN $0.10 per common share.

Organto has revised its previously announced proposal to reprice 34.4 million share purchase warrants.  Subject to acceptance by the TSX Venture Exchange, the exercise price of these warrants, which expire between June 20, 2019 and September 11, 2019, will be changed from $0.25 per warrant share to $0.17 per warrant share. In addition, the warrants will be subject to an acceleration clause.  If the closing price of the Company’s shares is $0.21 or greater for 10 consecutive trading days, then the warrant holders will have 30 days to exercise their warrants.

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

1-888-818-1364

info@organto.com

ABOUT ORGANTO

Organto is an integrated provider of year-round value-added branded organic vegetables and seasonal organic and non-GMO fruit and vegetable products 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 sourcing, logistical and processing 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 a variety of regions, with plans to continue to expand 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.




Source: Organto Foods Inc. (TSX Venture:OGO, OTC Pink:OGOFF)

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