Organto Foods Arranges New Financing and Foreign Exchange Facilities with Rabobank

Executive Summary

• Organto Foods Inc. has entered into a €4 million flexible financing and foreign‑exchange facility with Rabobank to support its rapid growth and manage currency risk.
• The facility is revolving, tied to a percentage of qualified accounts receivable, bears interest at EURIBR + margin, and includes an annual standby fee on unused capacity.
• Access to Rabobank’s Easy FX platform provides competitive hedging without immediate margin calls, enhancing Organto’s ability to meet customer demand and deepen supplier relationships.

Key Details

• Facility Size: €4 million flexible financing facility.
• Utilization Basis: Percentage of qualified accounts receivable; expandable as business grows.
• Interest Rate: One‑month EURIBOR plus a pre‑established margin (margin amount not disclosed).
• Standby Fee: Annual fee charged on the average unused portion of the facility.
• Foreign‑Exchange Component: Access to Rabobank Easy FX platform; provides hedging at competitive rates with no immediate margin calls.
• Purpose: Fund future growth, support working capital needs during key contracting season, and mitigate foreign‑exchange risk associated with European operations.
• Strategic Rationale: Enhances Organto’s balance sheet strength, supports expansion in organic/fair‑trade fresh produce markets, and deepens supplier relationships in origin countries.

Notable Quotes

“We are extremely pleased to have entered into these facilities with a premier bank who has deep roots in the agricultural and foods sectors… These new financial and foreign exchange facilities will help fund this future growth, and together with our current strong balance sheet, further positions our Company for an exciting future.” – Steve Bromley, Co‑Chair & CEO

“Securing a flexible working capital facility combined with an enhanced foreign exchange hedging facility allows us to continue to strengthen our position as a premier supplier of organic and fairtrade fresh produce…” – Bob Kouw, COO, Global Operations