In addition to the $5 million note, as part of the agreement:
- Inventages converted $10 million of existing notes into Common Stock of the Company.
- The maturity date of the $3 million note which was issued to Inventages on December 2, 2008, has also been extended until March 17, 2010, to coincide with the maturity date of the current $5 million secured convertible promissory note.
Changes to the Board of Directors
Also as part of the agreement, effective February 19, 2009:
- Four members of the seven person Board of Directors of Organic To Go (Dave Smith, Roy Bingham, Peter Meehan, and Douglas Lioon) have resigned. Remaining on the Board of Directors are Jason Brown, Hass Hassan, and Dr. Gunnar Weikert.
- Dr. Wolfgang Reichenberger was appointed to the Board effective immediately
Dr. Reichenberger is a partner of Inventages Whealth Management Inc. Prior to Inventages, Dr. Reichenberger served as CFO of Nestlé, the world's largest food and beverage company, from 2001-2005. Dr. Reichenberger held several senior-level management positions in operations in the U.S., Asia, and South America in his 29-year career at Nestlé prior to becoming CFO. Organic To Go will benefit significantly from Dr. Reichenberger's vast experience. Dr. Reichenberger says, “The Organic To Go business model of delivering tasty organic fresh food through different channels excited me since we first invested in the company. It makes sense in good times and also under difficult economic circumstances. I look forward to bringing Inventages’ and my own experiences to the team at Organic To Go.”
Jason R. Brown, CEO says, “While our foodservice sector has clearly experienced unique challenges due to the current macro economic headwinds, our core customers have remained loyal and we believe as the economy turns positive there will be an even greater appreciation for having a delicious clean food option within the business community. By making this latest investment, our largest investor, Inventages (which includes Nestlé as its largest investor), has again concretely demonstrated its belief in and willingness to support Organic To Go's business model and our long-term growth potential."