pcNewsWire – Organto Foods Inc. (TSX-V: OGO; OTCPK: OGOFF) has closed the first tranche of its previously announced non-brokered private placement, issuing 12,699,634 units at a price of $0.15 per unit for gross proceeds of approximately $1,904,000.
Proceeds of the first tranche will be used primarily to accelerate the roll-out of Organto’s vertically integrated value added fresh-cut, branded organic produce business.
NOT FOR DISSEMINATION IN THE UNITED STATES OR TO UNITED STATES NEWSWIRE SERVICES
Organto Raises $1.9 Million from First Tranche Closing
Vancouver, BC, Canada, June 21, 2017 – Organto Foods Inc. (OGO: TSX-V, OGOFF: OTC) (“Organto”) is pleased to confirm that it has closed the first tranche of its previously announced non-brokered private placement. Gross proceeds of approximately $1,904,000 were raised from the sale of 12,699,634 units at a price of $0.15 per unit. Each unit consists of one common share and one transferrable warrant to purchase one additional common share of Organto exercisable at a price of $0.25 for a period of 24 months from the closing date. Organto expects to close a second tranche of the private placement in July 2017.
The proceeds of the first tranche will be used primarily to accelerate the roll-out of Organto’s vertically integrated value added fresh-cut, branded organic produce business. Organto currently employs a business model that is integrated from the “table to the field”, addressing growing consumer demand for fresh and healthy food products. The current funding will accelerate the development of increased supply to meet market demand via both company operated operations and strategic third party supply relationships.
In connection with the first tranche closing, Organto paid 8% finder’s fees to two finders totaling $73,075.99 and issued 8% non-transferrable finders’ warrants exercisable to acquire up to 487,173 common shares of Organto for a period of 24 months from the closing date at a price of $0.15 per share.
The shares, warrants and finder’s warrants are subject to a four month hold period expiring on October 21, 2017. The private placement is subject to the final approval of the TSX Venture Exchange (the “TSX-V”).
ON BEHALF OF THE BOARD,
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: