VANCOUVER, BRITISH COLUMBIA–(Marketwired – May 11, 2016) – Organto Foods Inc. (TSX VENTURE:OGO) is pleased to announce the creation of majority-owned Organto Argentina S.A., and the signing of a contract with Maresba, S.A., a large producer of organic fruit from the Patagonian region of Argentina, with more than 70 years of experience in the production, processing and sale, of a variety of fruit products for export to the United States and Europe.
Organto intends to commence production in Argentina this year and initially focus on snow peas and sugar snaps, together with the introduction of fresh, organic asparagus under the Organto brand. Under the terms of the contract, Organto and Maresba have entered into an agreement that will allow Organto to pack and process its product from the Patagonia region of Argentina in Maresba’s state of the art plant over the next 10 years. Maresba will be required to maintain the plant’s organic certification while Organto will fund a modest level of capital expenditures for required machinery. Organto will pay Maresba a fixed percentage above actual costs to cover fixed plant expenditures. Maresba’s large scale 28,300 m2 (304,000 ft2) plant will allow Organto to store up to 4 million kilos of fresh product in cold storage facilities. In addition, Organto and Maresba will be working together to develop and implement specific aspects of Organto’s social responsibility platform and organic cooperative farming model.
Peter Gianulis, the CEO for Organto, commented, “Organto Argentina S.A. gives Organto the potential to significantly increase the company’s organic production capacity as a result of the abundant amount of organic land, high-quality processing and packing plants, and excellent agricultural infrastructure available in Argentina. It will also allow Organto to further its strategy of developing company-owned organic farms, controlled-environment farms, and organic cooperative farming organizations in one of the largest, organic fertile regions in the world. The Patagonian region of Argentina (near Rio Negro) has excellent growing conditions for a variety of products, and importantly, is counter-cyclical to northern hemisphere growing regions. Once operations are underway, this will allow Organto to deliver fresh-cut, organic products to its customers in Europe and North America year-round.”
ON BEHALF OF THE BOARD,
Peter L Gianulis, President & CEO
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.
This 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 plans to incorporate a majority-owned subsidiary in Argentina and to enter into a cooperative production sharing agreement with Maresba, S.A.; future plans for growth and development of the businesses of Maresba and Organto; the intention for Maresba to apply for organic certification of its plant; the time frame within which production in Argentina is expected to begin; the development and implementation of a comprehensive social responsibility platform; achieving management’s goals and objectives; the future prospects for the company; 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 successfully entry into by the parties of a definitive cooperative production sharing agreement; the ability of Maresba to have its plant organically certified, and the expected time frame within which the certification process will be completed; that production in Argentina will commence on a timely basis; levels of agricultural production; achieving a sufficient level of profitability to allow management to fund social responsibility initiatives and to develop and implement its cooperative farming model; establishing market share; cost increases; dependence on suppliers, partners and contractual counter-parties; changes in the business or prospects of the company; unforeseen circumstances; risks associated with the organic and conventional produce business, including inclement weather, unfavourable growing conditions, low crop yields and similar risks; general business and economic conditions; and ongoing relations with employees, consultants, partners and joint venturers. The foregoing list is not exhaustive and we undertake no obligation to update any of the foregoing except as required by law.
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