Organto Foods arranges $7-million private placement

Executive Summary

• Organto Foods Inc. has arranged a non-brokered private placement of up to 14 million units at a price of C$0.50 per unit, raising gross proceeds of C$7.0 million.
• Each unit consists of one common share and one-half common share purchase warrant.
• Net proceeds are intended for the growth of organic and fairtrade product lines, technology platform expansion, and general working capital.

Key Details

• Transaction Structure: Non-brokered private placement of up to 14 million units.
• Price: C$0.50 per unit.
• Gross Proceeds: C$7.0 million.
• Unit Composition: Each unit comprises one common share and one-half common share purchase warrant.
• Warrant Terms:
  • Each full warrant entitles the holder to acquire one common share.
  • Exercise Price: C$0.75 per warrant share.
  • Duration: 18 months from the closing date, subject to acceleration.
  • Acceleration Clause: The company may accelerate the expiry date to 30 days following a news release if the closing price of common shares equals or exceeds $1.00 for 10 consecutive trading days on the TSX Venture Exchange after the closing date.
• Use of Proceeds: Growth of organic and fairtrade fruit and vegetable products, technology platform development, and general working capital.
• Finders' Fees: Cash commission of up to 7.5% of gross proceeds may be paid.
• Regulatory Approvals: Subject to prior approval of the TSX Venture Exchange and other requisite corporate, regulatory, and security holder approvals.
• Restrictions:
  • Statutory Hold Period: Four months and one day from issuance under Canadian securities laws.
  • Contractual Lock-up: 12-month restriction on transfer commencing on the date of issuance.

Notable Quotes

• None provided in the text.