Strategic Supply Partner to Participate in Private Placement
Vancouver, British Columbia (FSCwire) - Organto Foods Inc. (TSX-V: OGO, OTC: OGOFF) (“Organto” or “the Company”), an integrated provider of value-added organic vegetable and fruit products today announced that as part of its strategy to significantly develop organic product supply from Mexico, it has signed a Memorandum of Understanding with an established organic supplier of organic fruits and vegetables from the region including organic blackberries, organic blueberries and other organic fruits and vegetables. In hand with this, the strategic supplier has committed to participate in Organto’s recently announced private placement, aligning interests in the long-term success of this relationship.
This agreement represents a key first step in developing supply from a region with significant presence and expertise in organic fruits and vegetables, bringing together Organto’s technical knowledge and go-to-market expertise, the strategic supply partner’s existing infrastructure, technical knowledge and growing expertise, and the financial resources of Accendo Banco, a progressive Mexican based financial institution. In addition to supply of organic blackberries and blueberries, the strategic supply partner will begin commercial trials of value-added organic vegetables which are currently part of Organto’s product portfolio with the goal of expanding supply as growing processes are refined.
“We are excited by the immense supply potential from Mexico and are pleased to be working with our new supply partner and investor as we expand our sourcing and supply platform to address continued growing demand for fresh organic vegetable and fruit products.” commented Steve Bromley, Chair and Interim CEO of Organto Foods Inc. “We are very pleased that we have alignment on the strategic benefit of working together as we leverage our resources to expand our businesses. We are also pleased to be working alongside Accendo Bank as they bring financial resources to the growing Mexican agricultural sector and support the continued development of organic supply from the region, critical to Organto’s growth.”
Accendo Banco is an established strategic lender to numerous farming clients throughout Mexico, many of whom grow organically or are in the process of converting to organic growing practices. The bank is committed to lending to progressive growers and processors throughout Mexico to support continued development of sustainable long-term supply from the region.
The addition of this new supply source and expanded product capabilities aligns with Organto’s strategy to expand beyond its value-added organic vegetables product offering and supply capabilities. The addition of expanded supply relationships focused on organic soft, tropical and exotic fresh fruits such as organic blueberries, organic blackberries, organic avocado, organic passion fruit and organic mangos, as well as other organic vegetables, are expected to expand revenue streams, deepen supply relationships with strategic growers in key supply markets, expand market presence and develop incremental opportunities for Organto “I am Organic” branded products and private label offerings.
ON BEHALF OF THE BOARD,
Chair and Interim Chief Executive Officer
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Organto is an integrated provider of year-round value-added branded organic vegetables and seasonal organic and non-GMO fruit and vegetables produce serving a growing socially responsible and health conscious consumer around the globe. Organto employs a business model that is integrated from the “table to the field”. Driven by consumer demand for healthy and organic food products, it operates an integrated business model with sourcing, logistical and processing capabilities, providing complete traceability from the table back to the field. Operations are currently located in Guatemala, The Netherlands and the USA, as well as third-party supply from a variety of regions, with plans to continue to expand supply capabilities via strategic third-party growers and processors in Africa, Mexico and other growing regions. 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 integrated year-round supply capabilities and plans to continue to develop and expand these capabilities; plans to expand product offerings; the benefit of incremental supply from Mexico; the benefits of the strategic supplier participating in Organto’s recently announced private placement, 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, unfavourable 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, partners and joint venturers. The foregoing list is not exhaustive and Organto undertakes no obligation to update any of the foregoing except as required by law.
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Source: Organto Foods Inc.
(TSX Venture:OGO, OTC Pink:OGOFF)
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