Organto Closes C$1.0 M Private Placement Financing with Strategic Investor

Rhea-AI Summary

Organto Foods (OTC:OGOFF) has successfully closed a C$1.0 million private placement with a strategic investor. The company issued 4,000,000 units at $0.25 per unit, with each unit comprising one common share and one-half warrant.

Each whole warrant allows the purchase of one additional common share at $0.35 until December 26, 2026. The proceeds will be used for general working capital. A finder's fee of $60,000 was paid in connection with the placement. The securities are subject to a hold period until October 27, 2025.

Positive

• Secured C$1.0 million in additional working capital
• Strategic investor participation indicates external confidence
• Warrants provide potential for additional future capital at $0.35 per share

Negative

• 6% finder's fee reduces net proceeds to $940,000
• Potential future dilution if warrants are exercised
• 25% discount to warrant exercise price suggests current market weakness

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

VANCOUVER, BC AND BREDA, NETHERLANDS / ACCESS Newswire / June 26, 2025 / Organto Foods Inc. (TSX-V:OGO)(OTC:OGOFF) ("Organto" or the "Company") today announced it has closed its previously announced non-brokered private placement (see June 18, 2025 press release) of 4,000,000 units of the Company (the "Units") at a price of $0.25 per Unit (the "Private Placement") for gross proceeds of $1,000,000. The Private Placement was completed with an arm's length strategic investor.

Each Unit issued consists of one Common Share in the capital of the Company (a "CommonShare") and one-half of one common share purchase warrant of the Company (a "Warrant").

Each whole Warrant entitles the holder to acquire one Common Share (a "Warrant Share") at an exercise price of $0.35 until December 26, 2026.

The Company will use the net proceeds of the Private Placement to fund general working capital.

The Common Shares, Warrants and any Warrant shares issued upon exercise of the Warrants are subject to a hold period and may not be traded until October 27, 2025 except as permitted by appliable securities legislation. In consideration for arranging the Private Placement, the Company paid a cash finder's fee in the amount of $60,000 in connection with the Private Placement.

ON BEHALF OF THE BOARD

Steve Bromley
Chairman and CEO

For more information, contact:
Investor Relations
John Rathwell, Senior Vice President, Investor Relations & Corporate Development
647 629 0018
info@organto.com

ABOUT ORGANTO

Organto is a leading provider of branded, private label, and distributed organic and non-GMO fruit and vegetable products using a strategic asset-lighter business model to serve a growing socially responsible and health-conscious consumers. Organto's business model is rooted in its commitment to sustainable business practices focused on environmental responsibility and a commitment to the communities where it operates, its people, and its shareholders.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

FORWARD LOOKING STATEMENTS

This news release may include certain forward-looking information and statements, as defined by law, including without limitation, Canadian securities laws and the "safe harbor" provisions of the US Private Securities Litigation Reform Act ("forward-looking statements"). In particular, and without limitation, this news release contains forward-looking statements respecting the Company's use of net proceeds from the Private Placement. Forward-looking statements are based on a number of assumptions that may prove to be incorrect, including, without limitation, the assumption that the Company will use the net proceeds from the Private Placement for general working capital purposes. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in forward-looking statements in this news release include, among others, uncertainty regarding the regulatory risks; risks related to market volatility and economic conditions; risks related to unforeseen delays; and risks that necessary financing will be unavailable when needed. For further information on these and other risks and uncertainties that may affect the Company's business, see the "Risks and Uncertainties" and "Forward-Looking Statements" sections of the Company's annual and interim management's discussion and analysis filings with the Canadian securities regulators, which are available under the Company's profile at www.sedarplus.ca. Except as required by law, Organto does not assume any obligation to release publicly any revisions to forward-looking statements contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

SOURCE: Organto Foods, Inc.

View the original press release on ACCESS Newswire

FAQ

What are the terms of Organto Foods' (OGOFF) private placement announced on June 26, 2025?

Organto Foods raised C$1.0 million by issuing 4,000,000 units at $0.25 per unit, with each unit including one common share and one-half warrant exercisable at $0.35 until December 26, 2026.

How will Organto Foods use the proceeds from the C$1.0M private placement?

The company will use the net proceeds for general working capital purposes.

What is the lock-up period for Organto Foods' private placement securities?

The securities (common shares, warrants, and warrant shares) are subject to a hold period until October 27, 2025.

How much was the finder's fee for Organto Foods' private placement?

Organto Foods paid a cash finder's fee of $60,000, representing 6% of the gross proceeds.

Who participated in Organto Foods' private placement?

The private placement was completed with an arm's length strategic investor, though the specific identity was not disclosed.