Organto Closes Second Tranche of Oversubscribed Financing
Organto Foods has successfully completed the second tranche of its private placement of unsecured convertible debentures, raising $238,000. The debentures carry a 10% annual interest rate, maturing in February 2025, and can be converted into common shares at CDN $0.30 each. If Organto's shares exceed CDN $0.45 for 10 consecutive trading days, conversion may be accelerated. Total fundraising from this placement may reach $1.1 million. The funds will support growth initiatives and general working capital, pending final acceptance from the TSX Venture Exchange.
- Raised $238,000 in second tranche of debentures.
- Total expected to raise $1.1 million from private placement.
- Funds will support growth initiatives and working capital.
- None.
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
VANCOUVER, BC and BREDA,THE NETHERLANDS / ACCESSWIRE / March 23, 2023 / OrgantoFoods Inc. (TSXV:OGO)(OTCQB:OGOFF)(FSE:OGF) ("Organto" or "the Company"), a leading provider of organic and value-added organic fruit and vegetable products, today announced that it has closed the second tranche of its previously announced (see December 13, 2022, and February 24, 2023 news releases) private placement of unsecured convertible debentures ("Debentures").
The Debentures issued in the second tranche were for gross proceeds of
Organto will pay finder's fees of CDN
Marketing of the private placement continues and is expected to close at the end of March 2023. The Company now expects to raise a total of
Funds raised from the private placement of Debentures will be used to support growth initiatives and for general working capital purposes.
The Debenture financing remains subject to final acceptance by the TSX Venture Exchange.
ON BEHALF OF THE BOARD,
Steve Bromley
Chair and Co-Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
For more information contact:
Investor Relations
info@organto.com
John Rathwell, SeniorVice President, Corporate Development and Investor Relations 647 629 0018
ABOUT ORGANTO
Organto is an integrated provider of branded, private label, and distributed organic and non-GMO fruit and vegetable products using a strategic asset-light business model to serve a growing socially responsible and health-conscious consumer around the globe. Organto's business model is rooted in its commitment to sustainable business practices focused on environmental responsibility and a commitment to the communities where it operates, its people, and its shareholders.
SOURCE: Organto Foods Inc.
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FAQ
What is the purpose of the $238,000 raised from the second tranche of debentures by Organto Foods (OGOFF)?
What are the terms of the convertible debentures issued by Organto Foods (OGOFF)?
How much does Organto Foods (OGOFF) expect to raise in total from the private placement?
When can Organto Foods (OGOFF) accelerate the conversion of the debentures?