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
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.
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.
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