Organto Foods (OGO.V) said Thursday its European division has expanded its financing agreement with Dutch cooperative bank Rabobank to support business growth.
The facility has increased from 4-million euros to 7-million euros and is based on the company's accounts receivable, with potential to grow further. It expires in November 2027 and will automatically renew each year unless ended, according to the statement.
Borrowed funds will carry interest based on EURIBOR plus a margin, and Organto will place 630,000 euros on deposit as collateral, the company added.
"We've expanded our commercial relationships, supply depth, and operational infrastructure over the past year to support continued growth. This is now translating into tangible results, as we are now realizing weekly sales in the range of approximately C$2 million, reflecting an annual sales run rate of approximately C$100 million. With this growth comes the need for expanded operational financing facilities, and today we are pleased to announce the expansion of these facilities," Chief Executive Steve Bromley said.
The company's sheres closed up $0.02 to $0.83 on the TSX Venture Exchange.