Organto Foods Announces Debentureholder Approval of Settlement Terms
Organto Foods (OGOFF) has secured approval from debentureholders to settle its $8.05 million convertible unsecured subordinated debentures through the issuance of 40.25 million common shares at $0.20 per share. The debentures, originally due November 30, 2026, with an 8% interest rate, received 68.89% approval from holders, exceeding the required 66.7% threshold.
The settlement shares will be subject to a 30-month staged release restriction, with 25% portions being released at 21, 24, 27, and 30 months following issuance. The completion of this debt-to-equity conversion remains subject to TSX Venture Exchange approval.
Organto Foods (OGOFF) ha ottenuto l'approvazione dai detentori di obbligazioni convertibili per saldare i suoi $8,05 milioni di obbligazioni convertibili subordinate non garantite tramite l'emissione di 40,25 milioni di azioni ordinarie al prezzo di $0,20 per azione. Le obbligazioni, originariamente in scadenza il 30 novembre 2026 con un tasso di interesse dell'8%, hanno ricevuto il consenso del 68,89% dei detentori, superando la soglia richiesta del 66,7%.
Le azioni di regolamento saranno soggette a una restrizione di rilascio scaglionato di 30 mesi, con il 25% delle azioni che verrà rilasciato a 21, 24, 27 e 30 mesi dall'emissione. Il completamento di questa conversione da debito a capitale azionario è subordinato all'approvazione della TSX Venture Exchange.
Organto Foods (OGOFF) ha obtenido la aprobación de los tenedores de bonos para saldar sus $8.05 millones en bonos convertibles subordinados no garantizados mediante la emisión de 40.25 millones de acciones comunes a $0.20 por acción. Los bonos, originalmente con vencimiento el 30 de noviembre de 2026 y una tasa de interés del 8%, recibieron la aprobación del 68.89% de los tenedores, superando el umbral requerido del 66.7%.
Las acciones de liquidación estarán sujetas a una restricción de liberación escalonada durante 30 meses, liberando el 25% en los meses 21, 24, 27 y 30 después de la emisión. La finalización de esta conversión de deuda a capital está sujeta a la aprobación de la TSX Venture Exchange.
Organto Foods (OGOFF)는 805만 달러 규모의 전환 무담보 후순위 사채를 주당 0.20달러에 4,025만 주의 보통주 발행으로 상환하는 데 채권자들의 승인을 받았습니다. 해당 사채는 원래 2026년 11월 30일 만기이며, 이자율은 8%입니다. 채권자들의 68.89%가 승인하여 필요한 66.7% 기준을 초과했습니다.
상환 주식은 30개월에 걸친 단계적 해제 제한이 적용되며, 발행 후 21, 24, 27, 30개월에 각각 25%씩 해제됩니다. 이 부채를 자본으로 전환하는 절차는 TSX 벤처 거래소의 승인을 받아야 완료됩니다.
Organto Foods (OGOFF) a obtenu l'approbation des détenteurs d'obligations pour régler ses 8,05 millions de dollars d'obligations convertibles subordonnées non garanties par l'émission de 40,25 millions d'actions ordinaires à 0,20 $ par action. Les obligations, initialement arrivant à échéance le 30 novembre 2026 avec un taux d'intérêt de 8 %, ont reçu l'approbation de 68,89 % des détenteurs, dépassant le seuil requis de 66,7 %.
Les actions de règlement seront soumises à une restriction de libération échelonnée sur 30 mois, avec des tranches de 25 % libérées à 21, 24, 27 et 30 mois après l'émission. La finalisation de cette conversion de dette en actions reste soumise à l'approbation de la TSX Venture Exchange.
Organto Foods (OGOFF) hat die Zustimmung der Schuldverschreibungsinhaber erhalten, seine 8,05 Millionen US-Dollar an wandelbaren ungesicherten nachrangigen Schuldverschreibungen durch die Ausgabe von 40,25 Millionen Stammaktien zu je 0,20 US-Dollar zu begleichen. Die Schuldverschreibungen, ursprünglich fällig am 30. November 2026 mit einem Zinssatz von 8 %, erhielten eine Zustimmung von 68,89 % der Inhaber, womit die erforderliche Schwelle von 66,7 % überschritten wurde.
Die Abwicklungsaktien unterliegen einer 30-monatigen gestaffelten Freigabebeschränkung, wobei jeweils 25 % nach 21, 24, 27 und 30 Monaten nach Ausgabe freigegeben werden. Der Abschluss dieser Schulden-zu-Eigenkapital-Umwandlung steht unter dem Vorbehalt der Genehmigung durch die TSX Venture Exchange.
- Debt reduction of $8.05 million through equity conversion
- Strong debentureholder support with 68.89% approval
- Staged release of shares over 30 months helps prevent immediate dilution pressure
- Significant dilution through issuance of 40.25 million new shares
- Share price fixed at $0.20 for conversion regardless of market conditions
VANCOUVER, BC / ACCESS Newswire / May 1, 2025 / Organto Foods Inc. (TSXV:OGO)(OTC PINK:OGOFF) ("Organto" or the "Company"), today announced that as part of ongoing efforts to reduce debt and increase equity in the Company, that the holders (the "Debentureholders") of its 5 year,
the settlement of all amounts owing under the trust indenture providing for the issue of the Debentures dated as of November 12, 2021 (the "Indenture") and all other amounts payable under the Debentures and Indenture in exchange for the issuance by the Company of an aggregate of 40,250,000 common shares of the Company (the "Settlement Shares") at an issue price of
$0.20 per Settlement Share for an aggregate issue price of$8,050,000.00 (the "Settlement"), with each Debentureholder receiving that number of Settlement Shares as is equal to the aggregate principal amount of Debentures held by such Debentureholder divided by$0.20 ; andthe release and discharge of the Company from all obligations under the Debentures and the Indenture.
The Settlement Shares shall, in addition to any other resale restrictions as may be required under applicable securities laws and stock exchange rules, bear the following contractual restrictions on transfer which will be imprinted as a legend on the Settlement Shares and released over a 30-month period from the date of issuance of the Settlement Shares (the "Issue Date") as follows:
25% of the Settlement Shares will be released from the contractual restriction on the date that is 21 months following the Issue Date;25% of the Settlement Shares will be released from the contractual restriction on the date that is 24 months following the Issue Date;25% of the Settlement Shares will be released from the contractual restriction on the date that is 27 months following the Issue Date; and25% of the Settlement Shares will be released from the contractual restriction on the date that is 30 months following the Issue Date.
Debenture holders representing
Completion of the Settlement (the "Closing") remains subject to the approval of the TSX Venture Exchange (the "Exchange") and there can be no assurance that the Closing will occur. If approved, the Closing will become effective on the date that is not more than five business days following the date of receipt of Exchange approval of the Settlement and the issuance of the Settlement Shares, or such other date as may be determined by the Company.
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.
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 expected timing of the completion of the Settlement of the Debentures. Forward-looking statements are based on a number of assumptions that may prove to be incorrect, including, without limitation, the assumption that all applicable regulatory and/or other requisite approvals will be obtained in a timely manner and on acceptable terms; and that all conditions precedent to the restructuring and/or settlement of the Debentures will be satisfied in a timely manner. 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, regulatory risks including the risk that requisite Exchange approval may not be obtained; 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.
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
What is the value of Organto Foods' (OGOFF) debt settlement agreement?
How will OGOFF's settlement shares be released to debentureholders?
What percentage of debentureholders approved Organto Foods' settlement?
When were Organto Foods' (OGOFF) convertible debentures originally due?
What approvals are still needed for OGOFF's debt settlement?
