VANCOUVER, Oct. 8, 2019 /CNW/ - Organto Foods Inc.
(TSX-V: OGO, OTC: OGOFF) ('Organto" or the "Company").
On June 27, 2019 Organto announced
that it had entered into a Share Purchase Agreement to sell its
wholly owned subsidiary Medicannabis S.A.S., ("Medicannabis"), a
Colombian company focused on the development of medicinal cannabis,
to Xebra Brands Ltd. ("Xebra") for a combination of shares of
Xebra, cash and forgiveness of debt, with proceeds being used by
the Company to expand its food business. This transaction allows
Organto to continue to have an investment in the rapidly growing
cannabis sector while focusing operationally on its core organic
fruit and vegetables business.
Further to its news release of June 27,
2019 (the "June 27 Release")
Organto wishes to clarify the disclosure relating to the cash
consideration payable to Organto in connection with the sale of
Medicannabis to Xebra Brands Ltd.
Notwithstanding the relevant disclosure in the June 27 Release relating to the cash portion of
the overall consideration payable to Organto by Xebra, Organto
advises that it will receive cash proceeds of CDN $321,077 and promissory notes totalling CDN
$600,000 due by Organto to Xebra will
be forgiven. The CDN $321,077
represents CDN $500,000 of total cash
consideration payable under the Agreement (as detailed in the
June 27 Release) less cash advances
of CDN $187,023, which amount is
included in the CDN $600,000 of
promissory notes being forgiven. The CDN $187,023 is being deducted from the CDN
$500,000 otherwise due as it
represents advances which were not used to fund cannabis
operations, and Xebra had only agreed to forgive advances used to
fund such operations.
The transaction remains subject to shareholder and TSX-V
approval which the Company is currently seeking.
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.
SOURCE Organto Foods Inc.
