Organto Foods to prepay $2.3M in outstanding debentures

Executive Summary

• Organto Foods Inc. has announced its intention to prepay the aggregate principal amount of $2,340,850 outstanding across four series of convertible debentures (December 2024 Series A & B, February 2025, and March 2025).
• The prepayment is scheduled for November 28, 2025, following a mandatory 30-day notice period during which holders may exercise their conversion rights.
• The company faces a binary outcome: either pay approximately $2.55 million in cash (principal plus accrued interest) if no conversions occur, or issue approximately 3.9 million shares and pay only the accrued interest if all debentures are converted.

Key Details

• Debentures Prepaid: Aggregate principal amount of $2,340,850.
• Specific Series: December 2024 Series A, December 2024 Series B, February 2025, and March 2025.
• Interest Rate: 10% per annum.
• Prepayment Date: Friday, November 28, 2025.
• Notice Period: 30 days prior to the prepayment date.
• Conversion Rights: Holders have the right to convert debentures into common shares at a conversion price of $0.60 per share prior to the prepayment date.
• Scenario 1 (No Conversion): If no holders exercise conversion rights, the company will pay an aggregate cash payment of $2,549,679. This comprises the principal sum of $2,340,850 and unpaid interest of $206,829.
• Scenario 2 (Full Conversion): If 100% of holders exercise conversion rights, the company will issue an aggregate of 3,901,417 shares and pay an aggregate cash payment of approximately $206,829 (representing the unpaid interest).

Notable Quotes

• "As part of Organto Foods Inc.'s continuing efforts to reduce debt and strengthen its financial position, the company has elected to give notice of prepayment..."