Organto Foods Announces Debt Restructuring and Private Financing

Organto Foods Inc. has outlined plans to restructure debt and raise up to C$5 million through a non-brokered private placement. The company will issue up to 50 million common shares at C$0.10 each, potentially leading to 150 million shares outstanding.

The restructuring involves converting promissory notes, convertible notes, and debentures into shares, subject to exchange approval. Notes worth C$1.9 million at 12% interest and convertible notes of C$2.6 million at 10% interest will be settled through shares and amended terms, including adjusted conversion prices.

Debentures totaling C$8.05 million, under negotiation with major holder Antares Capital, may also convert into shares. The company has offered shares to creditors to settle C$280,000 in liabilities.

Proceeds from the private placement will support working capital needs, and Jaluca Limited will receive a finder’s fee for aiding in the transactions.