Strategic Supplier to Take Ownership
Position
VANCOUVER, Sept. 26, 2019 /CNW/ - Organto Foods Inc.
(TSX-V: OGO) (OTC: OGOFF) ("Organto" or "the Company"), an
integrated provider of fresh organic and conventional vegetables
and fruits today announced that it has re-commenced supply of
organic blueberries for sale into various European
markets.
Organic blueberries were Organto's largest selling product in
2018 and represented the Company's first sales of organic soft
fruit, a key step in the expansion of Organto's year-round
value-added organic fruits and vegetables product offering.
Organto sees strong demand for organic blueberries in the European
markets it serves.
Sales from the current Argentine supply source are expected to
commence the week of September 30,
2019 and run through to the end of 2019. Organto
continues to develop a year-round organic blueberry supply program,
that once fully implemented is expected to include supply from
strategic growers located in Argentina, Mexico, Peru
and other locations.
"We are very pleased to have re-commenced sales of organic
blueberries, a key product in our organic fruits and vegetables
portfolio." commented Rients van der
Wal, CEO of Organto Europe BV. "The addition of organic soft
fruits, including organic blueberries, remains consistent with our
realignment that we announced last year. We are focused on
increasing revenue streams beyond value-added organic vegetables,
deepening our supply relationships and rightsizing our cost base.
We have made progress on all three strategies, and are encouraged
by the progress we are achieving."
Concurrent with the start of the current blueberry season, the
Argentine supplier of organic blueberries will be taking a
strategic ownership interest in Organto via the receipt of 885,000
common shares of Organto, in satisfaction of €35,435 of
indebtedness resulting from blueberry supply in 2018. The
deemed issue price of the common shares for this indebtedness is
CDN $0.059 per share based on current
foreign exchange rates. "We are excited to have such an
important supplier as a new shareholder, providing Organto with
continued access to a value-added product." commented Mr. van der
Wal. The shares will be issued upon acceptance by the
TSX Venture Exchange and will be issued in 4 tranches with hold
periods of 4, 6, 8 and 10 months from the date of issuance.
ON BEHALF OF THE BOARD,
Steve Bromley
Chair and
Interim Chief Executive Officer
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.
ABOUT ORGANTO
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. The Organto Foods
Group is an integrated provider of year-round value-added branded
organic vegetables and seasonal organic and non-GMO fruit and
vegetable products using an asset-light business model to serve a
growing socially responsible and health conscious consumer around
the globe.
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 of
1995 ("forward-looking statements"). In particular, and without
limitation, this news release contains forward-looking statements
respecting Organto's business model and markets; Organto's
integrated supply capabilities and plans to continue to develop
year-round supply of organic blueberries; Organto's belief that
there is strong demand for organic blueberries in European markets;
Organto's belief that the issuance of common shares to the
Argentinian supplier of organic blueberries strengthens the
relationship with this supplier; management's beliefs, assumptions
and expectations; and general business and economic conditions.
Forward-looking statements are based on a number of assumptions
that may prove to be incorrect, including without limitation
assumptions about the following: the ability and time frame within
which Organto's business model will be implemented and product
supply will be increased; cost increases; dependence on suppliers,
partners and contractual counter-parties; changes in the business
or prospects of Organto; unforeseen circumstances; risks associated
with the organic produce business generally, including inclement
weather, unfavorable growing conditions, low crop yields,
variations in crop quality, spoilage, import and export laws and
similar risks; transportation costs and risks; general business and
economic conditions; and ongoing relations with distributors,
customers, employees, suppliers, consultants, contractors and
partners. The foregoing list is not exhaustive and Organto
undertakes no obligation to update any of the foregoing except as
required by law.
SOURCE Organto Foods Inc.
