Star Metro - Organto Foods Arranges New Financing and Foreign Exchange Facilities with Rabobank

Steve Bromley, Co-Chair and Chief Executive Officer commented, "We are extremely pleased to have entered into these facilities with a premier bank who has deep roots in the agricultural and foods sectors. We have experienced significant growth in our business as we serve fast-growing healthy eating and healthy living markets, and we believe there are significant opportunities to further accelerate this growth into the future. These new financial and foreign exchange facilities will help fund this future growth, and together with our current strong balance sheet, further positions our Company for an exciting future."

The new financial and foreign exchange facilities include a €4 million flexible financial funding facility, with utilization based on a percentage of qualified accounts receivable, with potential for expansion as the Company's business grows. Any funds borrowed will bear interest at the one-month EURIBOR rate plus a pre-established margin. An annual standby fee will be charged on the average unused portion of the facility. In addition, the foreign exchange facility includes access to the Rabobank Easy FX platform and provides foreign exchange hedging at competitive rates without the need for immediate margin calls.

Rabobank is a leading Dutch cooperative bank with deep roots in the agricultural and food sectors. The bank serves clients globally, focusing on sustainability and providing a full suite of financial services, including commercial and rural banking, as well as asset management. Driven by the mission of "growing a better world together," Rabobank partners with innovative, future-focused businesses throughout the food and agribusiness value chain.

"This new facility with Rabobank is an important milestone as this provides resources to continue to fuel our rapid growth and manage a key operational risk as we enter one of the most important contracting seasons of the year for our business. Securing a flexible working capital facility combined with an enhanced foreign exchange hedging facility allows us to continue to strengthen our position as a premier supplier of organic and fairtrade fresh produce, utilizing our integrated capital efficient supply platform. As demand for fresh, sustainably produced, and organic food products continues to grow, these facilities, combined with our current balance sheet strength, are key to ensuring we are well-equipped to meet customer expectations, deepen supplier relationships in origin countries and capitalize on new growth opportunities", commented Bob Kouw, Chief Operating Officer, Global Operations.

ON BEHALF OF THE BOARD

Steve Bromley
Co-Chair and CEO

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.

For more information, contact:

John Rathwell, Senior Vice President Corporate Development
647 629 0018
[email protected]

ABOUT ORGANTO FOODS

Organto is an integrated provider of branded, private label, and distributed organic, fairtrade, and non-GMO fruit and vegetable products using a strategic asset-efficient business model to serve a growing socially responsible and health-conscious consumer around the globe. 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 ("forward-looking statements"). In particular, and without limitation, this news release contains forward-looking statements including the Company's belief that is has experienced significant growth in its business as it serves fast-growing heathy eating and healthy living markets, and the Company's belief that there are significant opportunities to further accelerate this growth into the future; the Company's belief that these new financial and foreign exchange facilities will play a role in funding future growth, and when combined with the Company's current strong balance sheet, positions the Company for an exciting future; the Company's belief that the facility with Rabobank is an important milestone as the facility provides resources to continue to fuel rapid growth as it enters one of the most important contracting seasons of the year; the Company's belief that securing a flexible working capital facility combined with an enhanced foreign exchange hedging facility allows the Company to continue to strengthen its position as a premier supplier of organic and fairtrade fresh produce, utilizing its integrated supply platform; and the Company's belief that demand for fresh, transparent, and organic food products continues to grow, and the new financing facilities when combined with its current balance sheet strength are key to ensuring the Company is well-equipped to meet customer expectations, deepen supplier relationships and position the Company for future growth. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in forward-looking statements in this news release include, among others, regulatory risks; risks related to market volatility and economic conditions; risks related to unforeseen delays; and risks that necessary financing will be unavailable when needed. For further information on these and other risks and uncertainties that may affect the Company's business, see the "Risks and Uncertainties" and "Forward-Looking Statements" sections of the Company's annual and interim management's discussion and analysis filings with the Canadian securities regulators, which are available under the Company's profile at www.sedarplus.ca. Except as required by law, Organto does not assume any obligation to release publicly any revisions to forward-looking statements contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

SOURCE: Organto Foods, Inc.

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V.Jackson--SMC