Organic To Go Enters Into Agreement with Inventages Wealth Management to Close $5 Million Convertible Debt Financing
Inventages Converts Existing $10 Million Debt Into Equity
Organic To GoTM (OTCBB: OTGO) announced today that it has signed a definitive agreement to sell a $5 million secured convertible promissory note to Inventages Wealth Management Inc., one of the world's largest life-sciences, nutrition and wellness focused venture capital funds with $1.5 billion under management. The financing is expected to close within seven business days.
As part of the agreement, Inventages will convert $10 million of existing notes into Common Stock of the Company. In addition, the maturity date of the $3 million note which was issued to Inventages on December 2, 2008 has been extended until March 17, 2010, to coincide with the maturity date of the $5 million secured convertible promissory note.
Jason R. Brown, CEO, said, 'This latest investment by Inventages, our largest investor, demonstrates its continued belief not only in the organic foodservice business segment, but in the significant long-term growth potential of Organic To Go and our business model. This cash infusion will provide support to weather the current economic climate and will allow us to emerge, as the economy improves, better positioned to develop and expand our business. While we have grown from an idea to a chain of cafés in Seattle, Southern California and Washington, DC in the past 4 years, we believe we have only scratched the surface of opportunity surrounding feeding people delicious, fresh prepared food where they work and go for higher education. We continue to see tremendous opportunity in the years ahead in our core business of cafés and catering as well as in 3rd party sales relationships at airports and within universities.
'In February 2008 we made the decision to partner with Inventages, which includes Nestlé as its largest investor, as we felt adding an experienced food & beverage investment partner was the right next step in the further development of our existing branded corporate, foodservice and retail businesses. Today's action by Inventages shows how right we were,' Brown concluded.
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