Organto Foods closes $8-million private placement

Executive Summary

• Organto Foods Inc. has completed a non-brokered private placement raising $8.0 million in gross proceeds.
• The company issued 16 million units at $0.50 per unit, with each unit comprising one common share and one-half of a warrant.
• Net proceeds are designated for business growth, technology development, working capital, and potential debt repayment.

Key Details

• Gross Proceeds: $8,000,000
• Units Issued: 16,000,000 units
• Price Per Unit: $0.50
• Unit Composition: Each unit consists of one common share and one-half of a common share purchase warrant.
• Warrant Terms:
  • Each warrant entitles the holder to acquire one common share.
  • Exercise Price: $0.75 per warrant share.
  • Expiry Date: March 10, 2027.
  • Acceleration Clause: The company may accelerate expiry to 30 days after a news release if the closing price on the TSX Venture Exchange equals or exceeds $1 for 10 consecutive trading days.
• Finder’s Fees:
  • Cash Commission: $600,000.
  • Warrants: Warrants to purchase up to 1,200,000 common shares.
  • Finder’s Warrant Exercise Price: $0.50.
  • Finder’s Warrant Expiry: March 10, 2027.
• Use of Proceeds:
  • Continue growth of the organic and fair-trade fruit and vegetable products platform.
  • Further develop the company's technology platform.
  • Support general working capital requirements.
  • Repay part of the company's short-term debt.
• Restrictions:
  • Hold Period: Common shares, warrants, finders' shares, and related warrant shares are subject to a hold period until January 11, 2026.
  • Contractual Restriction: All securities issued pursuant to the private placement are subject to a 12-month contractual restriction on transfer commencing on the date of issuance.
• Regulatory Status: Closing remains subject to final approval of the TSX Venture Exchange.