Organic To Go (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, says, “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.”
Organic To Go decided in February 2008 to partner with Inventages, which includes Nestlé as its largest investor.
“We felt adding an experienced food and beverage investment partner was the right next step in the further development of our existing branded corporate, foodservice, and retail businesses,” Brown says. “Today’s action by Inventages shows how right we were.”
