Organto Foods completes $324K second tranche of private placement

News Release

NOT FOR DISSEMINATION IN THE UNITED STATES OR TO UNITED STATES NEWSWIRE SERVICES

Organto Closes 2nd Tranche of Private Placement for $324k

Vancouver, BC, Canada, August 4, 2017 – Organto Foods Inc. (OGO: TSX-V, OGOFF: OTC) (“Organto”) announces that it has closed the second tranche of its previously announced non-brokered private placement. Gross proceeds of approximately $324,781 were raised from the sale of 2,165,208 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. Together with the closing of the 1st Tranche back in late June total proceeds of approximately $2.25 million before costs and finders fees has been raised.

The proceeds of the private placement are being used primarily to accelerate the rollout of Organto’s vertically integrated value added fresh-cut, branded organic produce business. Organto currently employs a business model that is integrated from the “seed to the table”, addressing growing consumer demand for fresh, healthy and organic food products. The funding will accelerate the development of increased supply to meet market demand via both company operated operations and strategic third party supply relationships and fund needed working capital as the business grows.
“We continue to advance our year-round, vertically integrated business model as we address the market opportunity for fresh, organic value-added packaged vegetables,” commented Arnoud Maas, CEO of Organto Foods Inc. “This capital is instrumental as we are rolling out numerous initiatives over the coming months in support of our go-to-market strategy. We will continue to assess financing alternatives to meet our capital needs as our business grows.” added Mr. Maas.

In connection with the second tranche closing, Organto paid 8% finder’s fees to two finders totaling $13,200 and issued 8% non-transferrable finders’ warrants exercisable to acquire up to 88,000 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 December 4, 2017.

ON BEHALF OF THE BOARD,
Arnoud Mass
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
604-634-0970
1-888-818-1364
info@organto.com