Exclusive Company Introduction – Mon 22 Feb, 2021

Organto Foods – Introducing this fresh organic food provider on track to cash flow positive this year

Steve Bromley, Co-CEO and Chairman of Organto Foods (TSX.V:OGO) joins me to provide a comprehensive overview of the Company’s strategy to provide fresh organic fruits and vegetables in Europe. We discuss the move to an asset light model that was implemented in 2017 and now has the Company on track to generate positive cash flow this year. We review the recent revenue growth and where Steve continues to see growth opportunities.

As I have mentioned in the past I am always looking at a wide range of sectors that are in a growth stage and for companies within those sectors that are generating their own catalysts. Organto Foods was recently introduced to me so I wanted to bring them on the show and introduce the Company to you. Please email me with your thoughts on the Company as well as any questions you have for Steve. My email is Fleck@kereport.com.

Click here to visit the Organto Foods website and read over the full Corporate Presentation.

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  1. On February 22, 2021 at 9:07 am,
    cfs says:

    Issuing options to employees is fine, but why is option price so low ?

    • On February 22, 2021 at 9:28 am,
      Matthew says:

      Probably because they are part of regular employee compensation. Shareholders prefer to see way out-of-the-money “performance” options granted (those that incentivize good performance) but issuing at or in the money options is very common and often completely legitimate. I don’t know this company so I don’t know if I’d be critical of their use of options, but, one way or another, shareholders pay the employees. So, when it is done by fledgling companies to conserve cash, it can make perfect sense and be the best thing for everyone.

  2. On February 22, 2021 at 9:55 am,
    cfs says:

    I understand the use of options to incentivize. I hope the wording was incorrent in their public statement, because I don’t see the point of issuing for five years already in the money options, if you are trying to incentivize growth.

    • On February 22, 2021 at 10:36 am,
      Matthew says:

      That’s why I brought up options used for regular compensation. Those are not incentive options any more than an hourly wage is. And they shouldn’t be.

      • On February 22, 2021 at 10:46 am,
        Matthew says:

        Example: A worker who would normally make $100,000 per year accepts $70,000 plus $30,000 in long term options. The company saves cash and near term dilution.