VANCOUVER, April 9, 2019 /CNW/ - Organto Foods Inc.
(TSX-V: OGO, OTC: OGOFF) ('Organto"). Organto today announced
that is has received final acceptance of the TSX Venture Exchange
to issue 7,000,000 common shares ("Acquisition Shares") to the
original shareholders of Medicannabis S.A.S. ("Medicannabis"), a
privately held Colombian medicinal cannabis company which was
acquired by Organto in November 2018. In addition, Organto
will issue 461,538 common shares ("Finder's Shares") as a finder's
fee in accordance with the policies of the TSX Venture
Exchange.
Issuance of these shares was contractually subject to receipt of
a cultivation license representing one of the licenses that have
been applied for in Colombia by
Medicannabis, final acceptance of the TSX Venture Exchange, and
shareholder approval for the transaction via consent resolution
which has been received. The licensing process for the
remaining applications is ongoing and Organto remains optimistic
that these will be granted in 2019.
The Acquisition Shares and Finder's Shares will be subject to a
four month hold period under applicable securities regulations
which will expire on August 8, 2019
and will also be subject to contractual release limitations over a
three-year period.
"We continue to believe that the procurement and distribution of
cannabis related products is a logical and complementary extension
to our current fruits and vegetable business, given the rapid
legalization of cannabis globally." commented Steve Bromley, Chair and Interim Chief Executive
Officer of Organto Foods Inc. "While organic fruits and vegetables
will continue to be the mainstay of our business, we believe the
addition of a self-standing cannabis distribution division opens up
a wide array of options for Organto to create long-term value for
our shareholders."
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. Organto is
comprised of two independent business units, i) the Organto Foods
Group, and ii) the Organto Global Cannabis Group. 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. The Organto Global Cannabis Group is focused on the
growing market for medicinal cannabis around the world, with
initial efforts focussed on key regions of Latin America, utilizing low-cost natural
growing operations and a diverse and exclusive IP seed library to
deliver the medicinal properties consumers expect.
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 current business model and related expertise;
Organto's belief that the timing of receipt of remaining licenses
will be realized in 2019, Organto's belief that the addition of
Medicannabis is a logical and complimentary extension to the
current business that opens up a wide array of value creation
opportunities; management's beliefs, assumptions and expectations;
and general business and economic conditions. Forward-looking
statements are based on a number of assumptions that are subject to
a variety of risks and uncertainties and may prove to be incorrect,
including without limitation assumptions about the following: the
continued growth in global demand for cannabis products and the
continued increase in jurisdictions legalizing cannabis, and the
timely processing of regulatory approval for the acquisition of
Medicannabis and the license applications. The foregoing list is
not exhaustive and Organto undertakes no obligation to update any
of the foregoing except as required by law.
SOURCE Organto Foods Inc.