Organto Foods Achieves Debentureholder Approval for Debt Settlement

Organto Foods Inc. announced that holders of its convertible debentures approved a resolution to settle debts by issuing common shares. The debentures, valued at $8,050,000, will be exchanged for 40,250,000 common shares at $0.20 each. This decision received the necessary support from 68.89% of debenture holders, surpassing the required 66.7% threshold. Restrictions on transfer will lift in stages over 30 months.

The settlement, pending approval from the TSX Venture Exchange, seeks to reduce debt and improve equity. The transaction could become effective within five business days post-approval. Despite the announced approval, there is no guarantee of the deal’s completion.