Organto Announces Amendment to 2020 Series of Convertible Debentures - Seite 2

Private Placement of 2022 Series Convertible Debentures

Marketing of the previously announced private placement of convertible debentures is now underway. The Company plans to raise a minimum of $500,000 in new convertible debentures, referred to as the "2022 series convertible debentures", via this financing.

The annual interest rate is 10% to be paid annually in arrears. The term of the 2022 convertible debentures will be 24 months (2 years) from the date of issuance (the "Maturity Date"). In the event that the 2022 series convertible debentures have not been converted into equity by the Maturity Date, Organto must repay the full amount of the 2022 series convertible debentures together with any outstanding accrued interest on the Maturity Date. The 2022 series convertible debentures shall be convertible by the holder at any time on or before the Maturity Date, at the holder's sole discretion, into common shares of Organto at a price of $0.30 per share. Accrued interest shall not be convertible. In the event the 2022 series convertible debentures are converted in the first four months from the date of their issuance, the common shares will be subject to a hold period expiring four months from the date of issuance of the 2022 series convertible debentures. Anytime following four months from the date of issuance of the 2022 series convertible debentures, if the closing price of Organto's common shares equals or exceeds $0.45 per share for 10 consecutive trading days or more on the TSX Venture Exchange, Organto can call the 2022 series convertible debentures and force their conversion into common shares. Any and all accrued interest to the date of forced conversion will be paid in full in cash by the Company concurrently with or as soon as reasonably practicable following delivery of a notice of the forced conversion to any holder of 2022 series convertible debentures.

Organto will pay finders fees of 6% in cash and issue broker warrants equal to 6% of the total dollar amount of 2022 series convertible debentures sold by any finder. Each broker warrant will entitle the finder to purchase one common share at a price of $0.30 per common share for a period of two years from the date of the closing of the private placement. In the event the broker warrants are exercised in the first four months from the date of their issuance, the common shares will be subject to a hold period expiring four months from the date of issuance of the broker warrants.