pcNewsWire – Organto Foods Inc. (TSX-V: OGO, OTCPK: OGOFF) intends to complete a non-brokered private placement of 23,000,000 units at $0.15 per unit for gross proceeds of up to $3,450,000
Press Release
Organto Announces $3.45 Million Unit Private Placement
Not For Dissemination in the United States or To United States Newswire Services
Vancouver, B.C. (FSCwire) – Organto Foods Inc. (TSX-V: OGO, OTC: OGOFF) (“Organto”) is pleased to announce its intention to complete a non-brokered private placement of 23,000,000 units of Organto (“Units”) at a price of $0.15 per unit for gross proceeds of up to $3,450,000. Each Organto unit will consist of one common share and one warrant exercisable to purchase one additional Organto common share at a price of $0.25 for a period of 24 months after the closing date. The exercise date of the warrants will be subject to acceleration in the event that the volume-weighted average closing price of Organto’s common shares on the TSX Venture Exchange, or such other stock exchange on which Organto common shares are primarily traded from time to time, is greater than or equal to $0.35 per share for a period of 10 consecutive trading days (an “Acceleration Event”) and such Acceleration Event occurs any time after the expiration of the Hold Period (as hereinafter defined).
Subject to the approval of the TSX Venture Exchange (the “TSX-V”), Organto may pay to eligible finders cash finders’ fees equal to 8% of the gross proceeds raised and issue finders’ warrants equal to 8% of the number of Units issued to applicable subscribers under the private placement. Each finder’s warrant will be exercisable into one Organto common shares at a price of $0.15 for a period of 24 months from the closing date.
Organto intends to use the proceeds of the private placement to fund ongoing operations, to meet working capital requirements and for general corporate purposes. Organto reserves the right to re-allocate funds from time to time in accordance with company requirements.
All securities issued pursuant to the private placement are expected to be subject to a four month hold period (the “Hold Period”). The private placement is subject to the acceptance of the TSX-V.
ON BEHALF OF THE BOARD,
Arnoud Maas
CEO
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this news release.
For more information contact:
Investor Relations
604-638-3944
1-888-818-1364
info@organto.com
The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This news release does not constitute an offer of securities for sale, nor a solicitation for offers to buy any securities. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the company and management, as well as financial statements.
Source: Organto Foods Inc. (TSX Venture:OGO, OTC Pink:OGOFF)
