Organto Foods closes warrant exercise incentive program

Executive Summary

• Organto Foods Inc. has completed its early warrant exercise incentive program, resulting in the issuance of 7.76 million common shares and the generation of $5.82 million in aggregate gross proceeds.
• The company issued an additional 2,588,667 incentive warrants to participants who exercised their original warrants during the incentive period, which expired on February 19, 2026.
• The net proceeds will be used to finance growth, general corporate purposes, and working capital, with the CEO citing a strengthened balance sheet to support expansion and strategic acquisitions.

Key Details

• Gross Proceeds: $5.82 million generated from the exercise of 7.76 million common share purchase warrants.
• Shares Issued: 7.76 million common shares issued upon exercise.
• Incentive Warrants Issued: 2,588,667 new common share purchase warrants issued to holders who exercised warrants during the incentive period.
• Incentive Terms: For every three warrants exercised, holders received one additional common share purchase warrant.
• Incentive Warrant Terms: Each incentive warrant entitles the holder to acquire one common share at an exercise price of $1 per share for a period of one year from the date of issuance.
• Original Warrants: The program applied to 8 million warrants originally issued on September 10, 2025, as part of a non-brokered private placement.
• Unexercised Warrants: 240,000 warrants from the original issuance were not exercised; these remain exercisable at $0.75 per share until March 10, 2027.
• Hold Periods:
  • The 7.76 million shares issued upon exercise are subject to a hold period expiring on September 10, 2026.
  • All incentive warrants and shares issued upon exercise are subject to a four-month statutory hold period under Canadian securities laws and TSX Venture Exchange policies.
• Use of Proceeds: Financing growth, general corporate purposes, and working capital.

Notable Quotes

• Steve Bromley, CEO and Co-Chair: "We sincerely thank our shareholders for the early exercise of their warrants, demonstrating continued support and confidence in the company. The additional $5.8-million places Organto in a strong financial position, enabling us to accelerate the ongoing expansion of our core operations while also pursuing strategic acquisition opportunities."