Organto Foods Announces Increase in Size of Private Placement Financing to $8.0 Million

Executive Summary

• Organto Foods Inc. has increased the size of its previously announced non-brokered private placement from 14,000,000 units to 16,000,000 units due to strong investor demand.
• The financing remains priced at $0.50 per unit, increasing the total gross proceeds from $7,000,000 to $8,000,000.
• Net proceeds will be used to grow organic and fairtrade product lines, develop the company's technology platform, and support general working capital.

Key Details

• Transaction Structure: Non-brokered private placement of up to 16,000,000 Units.
• Price: $0.50 per Unit.
• Gross Proceeds: Increased to $8,000,000 (up from $7,000,000).
• Unit Composition: Each Unit consists of one Common Share and one-half Common Share Purchase Warrant.
• Warrant Terms:
  • Exercise Price: $0.75 per Common Share.
  • Term: 18 months from issuance.
  • Acceleration Rights: Warrants accelerate if the share price reaches or exceeds C$1.00 for ten consecutive trading days.
• Use of Proceeds:
  • Growth of organic and fairtrade fruit and vegetable products.
  • Further development of the Company's technology platform.
  • General working capital requirements.
• Regulatory Conditions: Completion is subject to approval by the TSX Venture Exchange.
• Hold Periods:
  • Common Shares and Warrants: Four months and one day from issuance under Canadian securities laws.
  • Contractual Restriction: Twelve-month restriction on transfer for all common shares and warrants, commencing on the date of issuance.
  • Warrant Exercise Shares: Common shares issued upon exercise of warrants are subject to a four-month hold period and a twelve-month contractual restriction from the date the warrants were issued.

Notable Quotes

• "The plan to increase the size of the Private Placement is the result of strong investor demand and reflects continued confidence in Organto's growth strategy." — Steve Bromley, Co-Chair and CEO