Organto Announces Sale of Three European Subsidiaries

VANCOUVER, BC AND BREDA, NETHERLANDS / ACCESSWIRE / June 5, 2024 / Organto Foods Inc. (TSXV:OGO), (OTCQB:OGOFF) announced a definitive agreement to sell three wholly owned Dutch subsidiaries. This move aims to improve the Company's financial position by streamlining operations. The TSX Venture Exchange has given conditional approval for the transaction.

The subsidiaries, Organto Europe BV, Fresh Organic Choice BV, and BeeOrganic BV, will be sold to an independent purchaser. This divestiture will address a net liability position of approximately $4.2 million as of March 31, 2024. The Purchaser will acquire all shares for 1 Euro and assume the subsidiaries' assets and liabilities.

Despite past contributions, these subsidiaries have struggled recently due to inadequate working capital and competitive pressures. The sale aims to reposition Organto's business, focusing on remaining entities, notably NFG New Fruit Group GmbH, acquired in January 2023.