Organto Foods completes C$8 million private placement financing

Organto Foods Inc. (TSXV:OGO)(OTCQB: OGOFF) completed a non-brokered private placement, issuing 16 million units at C$0.50 per unit for gross proceeds of C$8 million, according to a company statement.

Each unit consists of one common share and half of a common share purchase warrant. The warrants allow holders to purchase additional shares at C$0.75 each until March 10, 2027. The company can accelerate the warrant expiry date to 30 days after announcing such acceleration if its share price equals or exceeds C$1.00 for 10 consecutive trading days.

Organto paid finder's fees of $600,000 in cash and issued warrants to purchase up to 1.2 million shares at C$0.50 each, also expiring March 10, 2027.

The company plans to use net proceeds to grow its organic and fair-trade fruit and vegetable products platform, develop its technology platform, support working capital requirements, and potentially repay short-term debt.

All securities from the private placement are subject to a hold period preventing trading until January 11, 2026, and include a 12-month contractual transfer restriction from the issuance date. The transaction requires final approval from the TSX Venture Exchange.

Organto operates as an integrated provider of branded, private label, and distributed organic, fair-trade and non-GMO fruit and vegetable products.

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