Organto Foods Inc. Announces Private Placement

Organto Foods Inc., a company specializing in organic and non-GMO fruits and vegetables, revealed plans for a private placement totaling CDN $575,000. This includes issuing 5,750,000 common shares at CDN $0.10 each. Notably, 5,150,000 of these shares are secured by Steve Bromley, Organto's Chair and Co-CEO, at a cost of CDN $515,000, highlighting a significant inside investment.

This transaction, specified as a "related party transaction" under Multilateral Instrument 61-101, is exempt from certain formalities due to the investment size not exceeding CDN $2,500,000. This has allowed Organto to expedite the process, crucial for meeting urgent working capital needs. Additionally, Bromley's resulting ownership post-transaction will increase, suggesting a growing insider stake valued at 18.40% on a non-diluted basis and 19.01% on a partially diluted basis.

The planned use of the net proceeds is directed towards critical working capital requirements, emphasizing the company's operational needs. Approval from the TSX Venture Exchange is pending, with intentions to finalize the private placement promptly following approval. The shares issued will be restricted by a four-month hold period, underscoring the transaction’s aim at long-term investment rather than quick gains.