Organto’s financing initiative, involving the sale of convertible notes, was significantly over-subscribed with gross proceeds of CDN$4,630,000, including strong participation from insiders and existing shareholders as well as a diverse group of investors located in Canada, Mexico, and for the first time in the Netherlands, according to StreetInsider. The financing should see the further expansion of the provider of organic and value-added organic fruits and vegetables.
Rients van der Wal, co-CEO and CEO of Organto Europe BV, said: “We are extremely pleased to close this financing, which was very well received and over-subscribed. The proceeds will be used to fund our aggressive growth plans including achieving our previously announced target revenues for fiscal 2021 of CDN $35 to $37 million, an approximate 200% increase over 2020, including an expected annualized revenue run rate of CDN $50 million by the end of 2021. We believe that demand for fresh organic fruits and vegetables will continue to grow globally, driven by increased consumer interest in healthy foods that are produced in a sustainable and transparent manner, and this presents an exciting opportunity for Organto. We continue to make great progress, leveraging both the strong market demand and our cost effective and flexible business model to drive record results.”
The Convertible Notes issued as part of this financing have a term of two years, maturing in December 2022 and January 2023. The Notes carry an annual interest rate of 8% (payable annually), and are convertible into common shares of Organto (TSXV:OGO) at a price of CDN $0.30 per share. If at any time after four months from the date of issuance of the Notes, the closing price of Organto’s common shares as traded on the TSX Venture Exchange is equal to or greater than CDN $0.45 for 10 consecutive trading days or more, Organto may, in its sole discretion, accelerate conversion of the Notes. There is no pre-payment penalty.