Oragin Foods Announces Conversion of Debenture Interest Into Equity

Rhea-AI Summary

Oragin Foods Inc. (TSXV: OG; OTC: OGGFF) announced the issuance of 647,728 common shares to settle accrued interest of $71,250 on convertible debentures due between May 1 and July 31, 2022. The shares will be priced at $0.11 each and are subject to a four-month hold period, pending TSX Venture Exchange approval. This was part of a private placement from October 25, 2019. Oragin is a Canadian multi-pronged food company focusing on developing innovative food brands and retail operations, including Organic Garage.

Positive

• Issuance of shares for debt reduces cash burden on the company.
• Shares issued at a favorable price of $0.11, maintaining shareholder value.

Negative

• Accrued interest settlement indicates potential cash flow issues.
• Dependence on TSX Venture Exchange approval may delay transactions.

TORONTO--(BUSINESS WIRE)-- ORAGIN FOODS INC. (“Oragin” or the “Company”) (TSXV: OG) In accordance with the terms and conditions of the convertible debenture issued on October 25, 2019 (the “Debentures”) the Company has agreed, subject to the approval of the TSX Venture Exchange (the “TSXV”), to issue 647,728 common shares (the “Shares”) as settlement of payments of interest equal to $71,250.00 accrued between May 1 and July 31, 2022.

In a news release dated October 25, 2019, the Company had announced the completion of a private placement offering of the Debentures and the terms of such offering. Such terms include the requirement to pay accrued interest on and during the term of the Debentures to their holders within 30 days of each fiscal quarter by way of issuance of common shares at a conversion price equal to the Market Price (as defined in the polices of the TSXV at the time of conversion, subject to TSXV approval. The Shares will be issued at $0.11 per Share and will be subject to a statutory four-month hold period beginning as of the date of issuance of the Shares. The transaction is subject to the approval of the TSXV.

About Oragin Foods Inc.

Oragin Foods Inc. (TSXV: OG) (OTC: OGGFF) (FRA: 9CW) is a Canadian multi-pronged food company, where new and innovative food and beverage brands are developed, acquired, grown and commercialized through a Consumer Packaged Goods (CPG) Division, and the company also houses a Retail Division, which owns and operates one of Canada’s leading natural and organic food retailers Organic Garage. For more information please visit the Oragin website at www.oragin.com.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in the United States. The securities described herein have not been registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities law and may not be offered or sold in the “United States”, as such term is defined in Regulation S promulgated under the U.S. Securities Act, unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration requirements is available.

Cautionary Note Regarding Forward-looking Statements

This news release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "may", "will", "project", "should" or similar words, including negatives thereof, suggesting future outcomes.

Forward looking statements are subject to both known and unknown risks, uncertainties and other factors, many of which are beyond the control of Oragin, that may cause the actual results, level of activity, performance or achievements of Oragin to be materially different from those expressed or implied by such forward looking statements. Although Oragin has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

Forward-looking statements are not a guarantee of future performance and involve a number of risks and uncertainties, some of which are described herein. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Oragin's actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Any forward-looking statements are made as of the date hereof and, except as required by law, Oragin assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220902005312/en/

Bill Mitoulas

(416) 479-9547

ir@oragin.com

www.oragin.com

Source: Oragin Foods Inc.

FAQ

What is the recent development for Oragin Foods (OGGFF)?

Oragin Foods announced the issuance of 647,728 common shares as settlement for accrued interest on convertible debentures.

How much interest is being settled by Oragin Foods (TSXV: OG)?

Oragin Foods is settling $71,250 in accrued interest with the issuance of common shares.

What is the price per share for the recent issuance by Oragin Foods?

The shares will be issued at $0.11 each.

When were the convertible debentures originally issued by Oragin Foods?

The convertible debentures were issued on October 25, 2019.

What are the implications of the share issuance for Oragin Foods shareholders?

The issuance of shares may dilute existing shareholders but helps reduce immediate cash obligations.