Strategic Supplier to Take Ownership Position
VANCOUVER, Sept. 26, 2019 /CNW/ - Organto Foods Inc. (TSX-V: OGO) (OTC: OGOFF) ("Organto" or "the Company"), an integrated provider of fresh organic and conventional vegetables and fruits today announced that it has re-commenced supply of organic blueberries for sale into various European markets.
Organic blueberries were Organto's largest selling product in 2018 and represented the Company's first sales of organic soft fruit, a key step in the expansion of Organto's year-round value-added organic fruits and vegetables product offering. Organto sees strong demand for organic blueberries in the European markets it serves.
Sales from the current Argentine supply source are expected to commence the week of September 30, 2019 and run through to the end of 2019. Organto continues to develop a year-round organic blueberry supply program, that once fully implemented is expected to include supply from strategic growers located in Argentina, Mexico, Peru and other locations.
"We are very pleased to have re-commenced sales of organic blueberries, a key product in our organic fruits and vegetables portfolio." commented Rients van der Wal, CEO of Organto Europe BV. "The addition of organic soft fruits, including organic blueberries, remains consistent with our realignment that we announced last year. We are focused on increasing revenue streams beyond value-added organic vegetables, deepening our supply relationships and rightsizing our cost base. We have made progress on all three strategies, and are encouraged by the progress we are achieving."
Concurrent with the start of the current blueberry season, the Argentine supplier of organic blueberries will be taking a strategic ownership interest in Organto via the receipt of 885,000 common shares of Organto, in satisfaction of €35,435 of indebtedness resulting from blueberry supply in 2018. The deemed issue price of the common shares for this indebtedness is CDN $0.059 per share based on current foreign exchange rates. "We are excited to have such an important supplier as a new shareholder, providing Organto with continued access to a value-added product." commented Mr. van der Wal. The shares will be issued upon acceptance by the TSX Venture Exchange and will be issued in 4 tranches with hold periods of 4, 6, 8 and 10 months from the date of issuance.
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.
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. 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 business model and markets; Organto's integrated supply capabilities and plans to continue to develop year-round supply of organic blueberries; Organto's belief that there is strong demand for organic blueberries in European markets; Organto's belief that the issuance of common shares to the Argentinian supplier of organic blueberries strengthens the relationship with this supplier; 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.
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