VANCOUVER, Nov. 7, 2018 /CNW/ - Organto Foods Inc.
(TSX-V: OGO, OTC: OGOFF) ("Organto" or "the Company"), an
integrated provider of value-added organic vegetables and fruits
today announced that it has entered into a long-term strategic
supply relationship with an established supplier of conventional
and organic fruits and vegetables operating in Zimbabwe.
Under the terms of the five-year agreement, Organto will have
exclusive sales rights for all organic products produced by the
supply partner, and will initially focus on Organto's value-added
year-round organic vegetables, including organic green beans,
organic snow peas and organic sugar snaps. Delivery of these
products are expected to commence late in December 2018.
Annualized revenue potential of over CDN $5
million is expected at current forecast production rates,
with significant expansion possible subject to the availability of
additional organic acreage1.
Aligned with Organto's strategic business model, and as a second
phase to this strategic relationship, Organto also plans to add
organic soft fruits such as organic blueberries and blackberries,
and other organic vegetables including organic asparagus tips, for
delivery in the second half of 2019.
"We are excited to work with our new supply partner as we expand
our sourcing and supply platform for our core year-round
value-added branded vegetable products." commented Steve Bromley, Chair and Interim CEO of Organto
Foods Inc. "We have been challenged in the past by
supply/demand imbalances on these products, so we are pleased to
add this strategic supply source to our year-round platform."
The addition of this new supply source is part of Organto's
strategy to expand its value-added organic vegetables and fruits
product offering. Organto continues to increase its supply
capabilities via the addition of new supplier relationships focused
on organic soft, tropical and exotic fresh fruits and other organic
vegetables, in order to diversify its revenue streams beyond just
high-value organic vegetables. Organto intends to continue to
establish supply relationships with strategic growers in key supply
markets in order to expand market presence and develop
opportunities for Organto "I am Organic" branded products as well
as private label and distributed product offerings.
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 is an integrated provider of year-round value-added
branded organic vegetables and seasonal organic and non-GMO fruit
and vegetable products 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
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; 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, 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.
1.
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The CDN $5 million
forecast is based on shipping between 425,000 to 500,000 kilos of
fresh organic green beans, snow peas and sugar snaps over an entire
year with an average prices of CDN$10-$12/kilo of sold
product. The expansion potential addressed above is not
included in the CDN$5 million annualized forecast
projection.
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SOURCE Organto Foods Inc.