Organic To Go announced on February 23 that it had closed the sale of a $5 million secured convertible promissory note to Inventages, which will convert $10 million of existing notes into common stock of the company.
In addition, four members of the Organic To Go board of directors—Dave Smith, Roy Bingham, Peter Meehan and Douglas Lioon—resigned. Remaining on the board of directors are Organic To Go CEO Jason Brown, Hass Hassan and Gunnar Weikert. Wolfgang Reichenberger, former CFO of Nestlé and partner of Inventages, will join the board, effective immediately.
“While our foodservice sector has clearly experienced unique challenges due to the current macroeconomic 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,” Brown said in a statement. “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.” Brown went on to thank the exiting board members for their contributions to the company and expressed optimism that Hassan, Weikert and Reichenberger will be able to grow the company by tapping into their respective food, beverage and retail experience.
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 current $5 million secured convertible promissory note. Organic To Go has more than 170 locations, including 33 cafés, and more than 120 wholesale locations. Inventages manages a global portfolio worth more than $1.5 billion.
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