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Organto Foods has issued a bi-weekly update on the status of its delayed annual financial statements for the year ended December 31, 2023. The delay led to a management cease trade order (MCTO) granted by the British Columbia Securities Commission on May 1, 2024, preventing the company’s Co-CEOs and CFO from trading until the filings are complete. Shareholders are not affected. Organto expects to finalize the filings by June 28, 2024, and will issue bi-weekly updates until then. Additionally, Rients van der Wal has resigned as Director and Co-CEO to pursue another career opportunity. Steve Bromley remains as Chair and CEO.
Positive
- Organto Foods is taking proactive steps to address the delayed financial filings.
- Shareholders’ ability to trade is not affected by the MCTO.
- The company expects to complete the filings by June 28, 2024, which shows commitment to resolving the issue promptly.
- Organto continues to provide regular updates and comply with NP 12-203.
Negative
- The delay in filing annual financial statements could indicate underlying financial or operational issues.
- The MCTO restricts trading activities for key executives, which could impact management’s flexibility.
- The resignation of Co-CEO and Director Rients van der Wal may signal instability within the company’s leadership team.
Announces Board and Management Change
VANCOUVER, BC AND BREDA, NETHERLANDS / ACCESSWIRE / June 12, 2024 / Organto Foods Inc. (TSXV:OGO)(OTCQB:OGOFF) (“Organto” or the “Company“), a leading provider of organic and non-GMO fruit and vegetable products, is providing an update with respect to its previously announced management cease trade order (the “MCTO”) relating to the late filing of the Company’s annual financial statements and accompanying management’s discussion and analysis for the year ended December 31, 2023 (the “Annual Filings”).
Further to the Company’s news release dated May 1, 2024 (the “Announcement”), the Company’s principal regulator, the British Columbia Securities Commission (the “Commission”), granted the MCTO on May 1, 2024, under National Policy 12-203 – Management Cease Trader Orders (“NP 12-203”). Pursuant to the MCTO, the Co-Chief Executive Officers and the Chief Financial Officer of the Company may not trade in securities of the Company until such time as the Company files the Annual Filings and the Commission revokes the MCTO. The MCTO does not affect the ability of shareholders to trade their securities. The Company’s Board of Directors and management are continuing to work with its accounting team to prepare the Annual Filings as soon as practicable and it continues to be the Company’s reasonable expectation that the Annual Filings will be finalized on or before June 28, 2024.
Until the Annual Filings are filed, the Company intends to comply with the provisions of the alternative information guidelines as set out in NP 12-203 for as long as it remains in default, including the issuance of bi-weekly default status reports in the form of a news release.
The Company confirms that, since the date of the Announcement: (i) there has been no material change to the information set out in the Announcement that has not been generally disclosed; (ii) there has not been any other specified default by the Company under NP 12-203; (iii) the Company is not subject to any insolvency proceedings; and (iv) there is no material information concerning the affairs of the Company that has not been generally disclosed.
Board and Management Change
Organto also announces that Rients van der Wal has resigned from his positions as a Director and Co-Chief Executive Officer of the Company to pursue another career opportunity. Steve Bromley, Chair and CEO of Organto, commented, “We want to thank Rients for his many contributions to our Company and wish him much success in the future.” Mr. van der Wal will still be subject to, and has agreed to abide by, the terms of the MCTO until such time as the MCTO is revoked.
ON BEHALF OF THE COMPANY
Steve Bromley
Chair and CEO
For more information contact:
Investor Relations
John Rathwell, Senior Vice President, Investor Relations & Corporate Development
647 629 0018
info@organto.com
ABOUT ORGANTO
Organto is an integrated provider of branded, private label, and distributed organic and non-GMO fruit and vegetable products using a strategic asset-light 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 of 1995 (“forward-looking statements”). In particular, and without limitation, this news release contains forward-looking statements respecting the Company’s reasonable expectation that the Annual Filings will be finalized on or before June 28, 2024. Forward-looking statements are based on a number of assumptions that may prove to be incorrect, including without limitation assumptions about the following: the ability and time frame within which Organto’s business model will be implemented and product supply will be increased; cost increases; dependence on suppliers, partners, and contractual counter-parties; changes in the business or prospects of Organto; unforeseen circumstances; risks associated with the organic produce business generally, including inclement weather, unfavorable growing conditions, low crop yields, variations in crop quality, spoilage, import and export laws, and similar risks; transportation costs and risks; general business and economic conditions; and ongoing relations with distributors, customers, employees, suppliers, consultants, contractors, and partners. The foregoing list is not exhaustive and Organto undertakes no obligation to update any of the foregoing except as required by law.
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.
SOURCE: Organto Foods Inc.
View the original press release on accesswire.com
FAQ
What is the status of Organto’s annual financial statements for 2023?
Organto Foods has delayed the filing of its annual financial statements for 2023 and expects to complete them by June 28, 2024.
What is a management cease trade order (MCTO)?
An MCTO prevents a company’s senior executives from trading the company’s securities until specific filings are completed.
How does the MCTO affect Organto Foods shareholders?
The MCTO does not affect shareholders’ ability to trade their securities.
Who resigned from Organto Foods’ management team?
Rients van der Wal resigned from his positions as Director and Co-CEO of Organto Foods.
What is the stock symbol for Organto Foods?
Organto Foods trades under the stock symbol OGOFF.
When did Organto Foods expect to finalize the annual filings?
Organto Foods expects to finalize the annual filings by June 28, 2024.
