Continues to Expand Product Offering
VANCOUVER, BC and BREDA, THE NETHERLANDS / February 19, 2021 / Organto Foods Inc. (TSXV:OGO)(OTC PINK:OGOFF)(FSE:OGF) ('Organto' or 'the Company'), an integrated provider of organic and value-added organic fruits and vegetables today announced that after a successful market test, it has added fairtrade and organic mango to its growing product portfolio.
Organto has entered into a strategic product supply agreement with a diversified Peruvian grower, and plans to add other strategic supply sources around the globe as it builds out its year-round supply capabilities. The first container of organic mango from this new strategic supply source has been received and successfully marketed in Europe, with regular deliveries expected from this source though early April, followed by new supply sources which are currently in development.
In addition to organic mango, Organto plans to add supply of organic ginger and organic avocado from the same supplier in the coming months, further expanding its sources of these products to ensure year-round supply.
Mango is known for both its delicious taste profile and impressive nutritional benefits. The fruit is rich in vitamins, minerals and antioxidants and has been associated with many health benefits including anticancer effects as well as improved immunity, digestive, eye, skin and hair health.
'We are pleased to enter into this new strategic supply relationship and add organic mango to our growing portfolio of organic fruits and vegetables. As we build out our I AM Organic branded portfolio throughout 2021, we believe mango will be a key part of our diversified product offering.' commented Rients van der Wal, Co-CEO of Organto and CEO of Organto Europe B.V. 'We believe that demand for organic mango will continue to grow as consumers seek out great tasting foods combined with the unique health benefits that mango provides.'
Organto is expecting sales of organic mango to grow to an approximate CDN $4.0 to $6.01 million annual run rate over the next year, with the long-term objective of increasing the organic mango category to annualized revenues of approximately $10 million as the Company builds out its supply sources and expands its customer base over time.
Grant of Stock Options
Organto also announced today that it has granted 250,000 stock options to an employee, as per the terms of the Company's Stock Option Plan, at an exercise price of CDN $0.285, with 20% vesting immediately and 20% on each anniversary thereafter. The options granted have a term of five years.
Engagement of GRA Enterprises LLC
Organto also announced today that it has engaged GRA Enterprises LLC (the 'Consultant') to provide investor relations services pursuant to a Consulting Agreement dated February 16, 2021. Services will include the production and publication of investor bulletins, distribution of investor bulletins to the Consultant's e-mail list, and posts via the Consultant's blogs and social media accounts. In consideration of these services, the Company has agreed to pay the Consultant a fee of USD $30,000 for a 6-month contract. The Consultant is an arms-length party to the Company and may purchase securities in the Company from time to time for investment purposes.
Grants of Common Shares
Organto also announced that it proposes to issue 1,500,000 common shares to Bromley Consulting and Advisory Inc., a corporation controlled by Steve Bromley, Organto's co-CEO and 500,000 common shares to Brandal, B.V., a corporation controlled by Rients van der Wal, Organto's co-CEO. Mr. Bromley and Mr. van der Wal were appointed co-CEOs in September 2020 and the shares are proposed as a signing bonus. In order to conserve cash until Organto transitioned to cash flow positive operations, neither Mr. Bromley nor Bromley Consulting and Advisory Inc. were compensated for management and leadership services provided to Organto during the period November 2017 through December 2020 and Mr. van der Wal and Brandal B.V. agreed to be compensated at less than prevailing market rates. The proposed share issuance is subject to the acceptance of the TSX Venture Exchange.
ON BEHALF OF THE BOARD,
Chair and Co-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.
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Organto is an integrated provider of branded, private label and distributed organic and non-GMO fruit and vegetable products using a strategic asset-light business model to serve a growing socially responsible and health-conscious consumer around the globe. 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 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 belief that demand for organic mango will continue to grow as consumers seek great tasting foods with unique health benefits; Organto's belief that organic mango will be a key part of the I AM Organic branded product offering; Organto's plans to source organic ginger and organic avocado from the same supplier in the future; Organto's expectation that supply of organic mango will be expanded with new suppliers; Organto's belief that sales of organic mango will grow to an annualized run rate of CDN $4.0 to $6.0 million over the next year and to annualized revenues of approximately $10 million over time; 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.
1 Forecast is based on shipping organic mango with an average sales price ranging from CDN$2.50/kilo to $3.50/kilo of sold product. We anticipate sourcing products from numerous suppliers and countries including, but not limited to Peru.
SOURCE: Organto Foods Inc.
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