Oragin Foods Announces Notices of Default on Repayment of Convertible Debentures

Rhea-AI Summary

Oragin Foods Inc. (TSXV: OG, OTC: OGGFF) has received Notices of Default from holders of its convertible debentures issued on October 25, 2019, which matured on October 25, 2022. The Company has a 10-day Cure Period to remedy the default, expiring on November 10, 2022. Oragin intends to engage in discussions with the Holders and explore repayment options for the Debentures. The holders are unsecured creditors, which may pose risks to the Company.

Positive

• The Company is actively engaging in discussions with the Debenture Holders.
• Oragin is evaluating options for the repayment of the Debentures.

Negative

• Notices of Default have been received from Debenture Holders.
• Failure to remedy the default by November 10, 2022, could lead to a technical event of default.
• The Company faces obligations to unsecured creditors, which may affect financial stability.

TORONTO--(BUSINESS WIRE)-- ORAGIN Foods Inc. (“ORAGIN” or the “Company”) (TSXV: OG) (OTC: OGGFF) (FRA: 9CW) announces that it has received Notices of Default (the “Notices”) from the holders of convertible debentures issued on October 25, 2019 (the “Debentures”), which matured on October 25th, 2022 (the “Maturity Date”).

The Company and the holders of the Debentures (the “Holders”) have been in discussions leading up to the Maturity Date, however the Holders provided the Notices yesterday evening. Pursuant to the terms of the Debentures, the Company now has 10 business days, the last such day being November 10^th, 2022 (the “Cure Period”), to remedy the default and, if the Company does not do so by the end of the Cure Period, at that point a technical event of default will have occurred. The Holders are unsecured creditors.

The Company intends to continue discussions with the Holders and is also continuing to evaluate options that would allow for the repayment of the Debentures.

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. 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

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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 Foods, that may cause the actual results, level of activity, performance or achievements of Oragin Foods to be materially different from those expressed or implied by such forward looking statements. Although Oragin Foods 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. In this news release, the Company is making forward-looking statements with respect to its intention to continue discussions with the Holders and its ability to do so, as well as the Company’s evaluation of alternatives available to it.

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 Foods’ 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 Foods 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/20221028005262/en/

For further information:

Bill Mitoulas

T: (416) 479-9547

E: ir@oragin.com

W: www.oragin.com

Source: Oragin Foods Inc.

FAQ

What does the Notice of Default mean for Oragin Foods (OGGFF)?

The Notice of Default indicates that Oragin Foods has failed to meet obligations related to its convertible debentures, which could lead to further financial complications.

When is the deadline for Oragin Foods to address the default?

Oragin Foods has until November 10, 2022, to resolve the default issue.

What are the risks associated with Oragin Foods' convertible debentures?

The primary risks include potential technical defaults, obligations to unsecured creditors, and impacts on financial stability.

How does the default impact Oragin Foods' stock (OGGFF)?

The default may negatively affect investor confidence and could lead to declines in stock performance.

What actions is Oragin Foods taking regarding the convertible debentures?

The Company is in discussions with the Holders and exploring repayment options for the debentures.