Organto Foods Stock Price, News & Analysis

Organto Foods Inc. (TSXV:OGO)(OTCQB:OGOFF) released its audited financial results for the year ended December 31, 2023. Key highlights include:

- Record sales of $27.7 million, up 25% from the previous year
- Gross profit of $2.5 million (8.9% of sales), up 94% year-over-year
- Operating loss of $6.1 million, improved from $6.9 million in 2022
- Net loss of $13.4 million, increased from $10.8 million in 2022

The company underwent significant restructuring to streamline its product portfolio, refocus marketing strategies, and reduce costs. Organto is finalizing the restructuring of its convertible debenture obligations and expects to file Q1 and Q2 2024 financial statements soon to meet requirements for lifting the current Cease Trade Order.

Organto Foods Inc. (TSXV:OGO)(OTC PINK:OGOFF), a provider of organic and non-GMO produce, has been issued a failure-to-file cease trade order (FFCTO) by the British Columbia Securities Commission. This order prohibits trading of Organto's securities in Canada, including on the TSX Venture Exchange, due to delays in filing annual and interim financial statements.

The FFCTO replaces a previous management cease trade order granted on May 1, 2024. Organto is working with auditors to complete the required filings as soon as possible. The company expects to announce Q1 2024 results and file interim filings in early August. Organto is not subject to insolvency proceedings and states that all material information has been disclosed.

Organto Foods announced the completion of selling three wholly-owned Dutch subsidiaries—Organto Europe BV, Fresh Organic Choice BV, and BeeOrganic BV—to an independent third party. This divestiture aims to streamline operations, improve financial stability, and enhance profitability. The transaction was completed on an arm's length basis, with the purchaser acquiring the subsidiaries for €1 while assuming all their assets and liabilities, amounting to a net liability of approximately C$4 million. The purchaser gains rights to assets like cash, accounts receivable, inventories, and trademark rights, while also taking on liabilities such as accounts payable and leasehold obligations. Organto retains key subsidiaries, including NFG New Fruit Group GmbH, its core entity for organic products in Europe.

Organto Foods has provided an updated status regarding its management cease trade order (MCTO) linked to the delayed filing of its 2023 annual financial statements. The British Columbia Securities Commission granted an extension of the MCTO until July 15, 2024. This order restricts the trading activities of certain company executives but does not affect shareholders. The company and its auditors are working to complete the filings promptly. No new material changes or additional defaults have been reported since the last update on July 3, 2024.

Organto Foods, a provider of organic and non-GMO fruit and vegetables, has updated the status of its management cease trade order (MCTO). Granted on May 1, 2024, by the British Columbia Securities Commission, the MCTO was extended to July 15, 2024, due to audit delays for the year ending December 31, 2023. The MCTO affects the trading activities of the CEO, former Co-CEO, and CFO but does not impact shareholder trading. Organto and its auditors are working to complete the filings promptly. The company has adhered to regulatory guidelines and confirmed no additional material changes or defaults.

Organto Foods has issued a bi-weekly update on the status of its delayed annual financial statements for the year ended December 31, 2023. The delay led to a management cease trade order (MCTO) granted by the British Columbia Securities Commission on May 1, 2024, preventing the company's Co-CEOs and CFO from trading until the filings are complete. Shareholders are not affected. Organto expects to finalize the filings by June 28, 2024, and will issue bi-weekly updates until then. Additionally, Rients van der Wal has resigned as Director and Co-CEO to pursue another career opportunity. Steve Bromley remains as Chair and CEO.

Organto Foods announced the sale of three European subsidiaries—Organto Europe, Fresh Organic Choice, and BeeOrganic—to an independent purchaser for 1 Euro. The transaction aims to streamline operations, improve financial stability, and enhance the company's path to profitability. These subsidiaries represented a net liability of $4.2 million as of March 31, 2024. NFG New Fruit Group GmbH will become Organto's key operating entity. An independent valuation by Evans & Evans concluded that the liabilities assumption by the purchaser provided fair proceeds to Organto. The sale supports Organto's strategy to focus on organic and non-GMO products while improving its balance sheet.

On May 29, 2024, Organto Foods, a key provider of organic and non-GMO fruits and vegetables, updated stakeholders on its delay in filing annual financial statements for the year ending December 31, 2023. The British Columbia Securities Commission granted a management cease trade order (MCTO) on May 1, 2024, barring the Co-CEOs and CFO from trading company securities until the filings are completed. This does not affect shareholder trading. Organto aims to finalize and file the documents by June 28, 2024, and will issue bi-weekly updates until then. The company confirms no material changes or insolvency issues since their initial announcement.

Organto Foods provides an update regarding the delay in filing its annual financial statements for the year ending December 31, 2023. The British Columbia Securities Commission granted a management cease trade order (MCTO) on May 1, 2024, which restricts the Company's executives from trading company securities until the filings are completed. This does not affect shareholder trading. Organto expects to finalize the filings by June 28, 2024, and will issue bi-weekly updates until compliance is achieved. The Company assures no material changes since the previous announcement.