By Abigail W. Adams
Portland, Me., Nov. 4 – Organto Foods Inc. priced C$7 million 8% convertible debentures due 2026 at par with an initial conversion price of C$0.50, according to a company news release.
Beacon Securities Ltd., PI Financial Corp., Clarus Securities Inc. and Stifel Nicolaus Canada Inc. led the syndicate of underwriters for the offering, which was marketed via prospectus supplement in Canada.
The offering carries a greenshoe of C$1.05 million.
The debentures are non-callable until Nov. 30, 2023 and then subject to a 125% hurdle.
Concurrently, the company priced a private placement of 18,565,000 shares at C$0.322 per share for gross proceeds of C$5,975,000.
Net proceeds will be used for acquisitions, working capital and general corporate purposes.
Organto Foods is a Vancouver-based distributor of organic and non-GMO fruit and vegetable products.
| Issuer: | Organto Foods Inc.
|
| Securities: | Convertible debentures
|
| Amount: | C$7 million
|
| Greenshoe: | C$1.05 million
|
| Maturity: | Nov. 30, 2026
|
| Bookrunners: | Beacon Securities Ltd., PI Financial Corp., Clarus Securities Inc. and Stifel Nicolaus Canada Inc.
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion price: | C$0.50
|
| Call options: | Non-callable until Nov. 30, 2023 and then subject to a 125% hurdle
|
| Pricing date: | Nov. 4
|
| Settlement date: | Nov. 12
|
| Distribution: | Off-shelf
|
| Stock symbol: | TSX: OGO
|
| Stock price: | C$0.322 in concurrent offering
|
| Market capitalization: | C$97 million
|
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