Organto is the Largest Shareholder of XEBRA
Brands
VANCOUVER, Aug. 6, 2019 /CNW/ - Organto Foods
Inc. (TSXV: OGO) (OTC: OGOFF) ('Organto"). Organto
today announced that its former subsidiary, Medicannabis S.A.S.,
("Medicannabis") has received a THC Processing Licence in
Colombia, an important licence
necessary to move to full cultivation, processing and ultimately
exporting. On June 27, 2019,
Organto announced the sale of its shares in Medicannabis to Xebra
Brands Ltd. ("Xebra") for a combination of shares of Xebra,
cash and forgiveness of debt, which is subject to shareholder and
TSX approval. Prior to this Agreement, Organto owned 100% of
the outstanding shares of Medicannabis, a privately held Colombian
company focused on the development of medicinal cannabis. Xebra is
an emerging, privately held Canadian cannabis company developing
high-margin cannabis-based consumer products, with a major focus on
cannabis infused beverages. Xebra intends to seek a public
listing on the TSX Venture Exchange.
XEBRA also announced the closing of the acquisitions of Elements
Bioscience and Sativa Group Bioscience in Mexico; companies that are applicants for
approval of various CBD cannabis products. These acquisitions
coupled with the closing last month of a CDN$2.3 million private placement has positioned
Xebra to become an important emerging player in the cannabis
business in Colombia and
Mexico.
"We are excited to be a significant shareholder of Xebra Brands,
providing Organto with an important asset for the future,"
commented Steve Bromley, Organto's
Chair and Interim CEO. "We believe the continued execution of their
business plan should create tremendous shareholder value that will
also benefit Organto's shareholders," added Mr.
Bromley.
ON BEHALF OF THE BOARD
Steve Bromley
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.
ABOUT ORGANTO
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. 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.
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; Organto's belief that
being a shareholder in Xebra Brands provides an asset for Organto
that should benefit Organto's shareholders; Organto's belief that
Xebra Brands is positioned to become an important emerging player
in the cannabis business in Colombia and Mexico; belief that the THC processing license
that was received is an important license necessary to move to full
cultivation, processing and ultimately exporting;
management's beliefs, assumptions and expectations; and
general business and economic conditions. 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 of Xebra Brands to successfully execute its
business plan and in doing so create shareholder value; the ability
and time frame within which Organto's organic foods business model
will be implemented; 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, unforeseen costs
increases 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.
SOURCE Organto Foods Inc.