Organto Completes Fee Payment to Jaluca Limited

Rhea-AI Summary

Organto Foods (OTC:OGOFF) has completed the issuance of 4,380,000 common shares to Jaluca Limited at a deemed price of $0.10 per share. The shares were issued as compensation for Jaluca's corporate finance advisory services in the company's debt restructuring and convertible debentures settlement.

Additionally, the company disclosed details about its 2024 bonus program, with total bonuses of $822,000 to be paid to officers and key personnel. The bonus structure includes 70% in equity ($575,400) and 30% in cash ($246,600), with the equity portion already achieved in 2025 but not yet paid.

Positive

• None.

Negative

• Significant share dilution through issuance of 4,380,000 new shares
• Additional dilution expected from upcoming bonus-related share issuance
• Substantial bonus obligations of $822,000 amid restructuring period

News Market Reaction – OGOFF

-7.49%

1 alert

-7.49% News Effect

On the day this news was published, OGOFF declined 7.49%, reflecting a notable negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

VANCOUVER, BC AND BREDA, THE NETHERLANDS / ACCESS Newswire / July 17, 2025 / Organto Foods Inc. (TSXV:OGO)(OTC PINK:OGOFF) ("Organto" or the "Company") announces that it has completed the issuance of a total of 4,380,000 common shares (the "Shares") to Jaluca Limited ("Jaluca") at a deemed issue price of $0.10 per share following receipt of disinterested shareholder approval and TSX Venture Exchange ("TSX-V") approval.

As disclosed in the Company's March 20, 2025 and June 20, 2025 news releases, the Company retained Jaluca pursuant to a corporate finance advisory agreement to provide guidance and assistance in the negotiation and implementation of the overall restructuring of the Company, including the reduction of the Company's substantial debts and refinancing (see news release dated March 20, 2025) and the restructuring and settlement of its convertible debentures (see news release dated June 20, 2025). As compensation, the Company had agreed to pay to Jaluca a fee equal to 6% of the total value of settled convertible debentures at an issue price of $0.10 per share, excluding those held by Jaluca (the "Fee"), subject to disinterested shareholder approval in accordance with the policies of the TSX-V and the approval of the TSX-V, which approvals have since been obtained.

Disinterested shareholders holding an aggregate of 112,752,806 common shares representing approximately 71.29% of the Company's currently issued and outstanding common shares provided written consent to the Fee.

The Company has accordingly issued 4,380,000 Shares to Jaluca at a deemed issue price of $0.10 per Share in full satisfaction of the Fee. All of the Shares are subject to a hold period and may not be traded until November 17, 2025 except as permitted by appliable securities legislation.

2024 Bonus Program

The Company uses the bonus programs under its compensation agreements with management and staff as an element of variable compensation for officers, senior management and key employees of the Company. These bonuses are normally based on achieving certain milestones that are considered important for the development of the Company's business, and if utilized, are normally based on pre-determined key performance indicators ("KPI") and are paid upon achievement of the particular pre-determined KPI metrics.

Bonuses were granted to officers in 2024 in lieu of deferred or reduced compensation, with total deferred or reduced compensation discounted as deemed appropriate by the board of directors, to be paid via a combination of shares (70%) and cash (30%), subject to certain KPIs being met in 2025.

The full amount of these bonuses of $822,000 was fully accrued and disclosed in the financial statements of the Company for the year ended December 31, 2024, and the compensation disclosed in the compensation table included in the Company's Information Circular for its Annual General Meting held on June 25, 2025. The bonus is to be paid 70% in equity ($575,400) and 30% in cash (246,600).

To date in 2025, the 70% equity component of the bonus has been achieved, although none of the bonuses have yet been paid.

As a result, the Company intends to submit for TSXV acceptance the issuance of common shares to officers and key operating personnel based on the achievement of the 70% equity component of the bonus plan. The shares to be granted are proposed to be issued at the Discounted Market Price, as that term is defined in the TSX Listing Policy.

ON BEHALF OF THE BOARD

Steve Bromley
Chair 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.

SOURCE: Organto Foods, Inc.

View the original press release on ACCESS Newswire

FAQ

How many shares did Organto Foods (OGOFF) issue to Jaluca Limited?

Organto issued 4,380,000 common shares to Jaluca Limited at a deemed price of $0.10 per share.

What is the total value of Organto's 2024 bonus program?

The total bonus value is $822,000, split between 70% equity ($575,400) and 30% cash ($246,600).

When will the Jaluca Limited shares be eligible for trading?

The shares are subject to a hold period and cannot be traded until November 17, 2025, except as permitted by securities legislation.

What percentage of Organto shareholders approved the Jaluca fee payment?

Disinterested shareholders holding 71.29% of the company's outstanding shares (112,752,806 common shares) provided written consent to the fee.

How will Organto's 2024 bonus program be paid out?

The bonus program will be paid through a combination of 70% shares and 30% cash, subject to meeting specific key performance indicators (KPIs).