Organic To Go (OTCBB:OTGO), the nation’s first fast food chain to be certified as an organic retailer, has closed on $4.3 million of an anticipated $6 million financing with institutional investors, bringing the total equity investment in the company in the last year to $23 million. The final closing is expected within five days for the company, which posted 69% revenue growth for its second quarter over the prior year.
Boston-based Winslow Green Growth Fund is a lead investor in this latest round of financing. “We believe that Organic To Go is in the right space at the right time, with an exceptional management team,” says Matt Patsky, Managing Director.
The company also entered into a purchase agreement to acquire three new San Diego cafes with two catering locations that generated more than $3 million in profitable revenue last year. With this latest acquisition, Organic To Go now has 25 cafes in four regions.
“There’s no slow down in the public’s interest in healthier food and more organic choices,” says Jason Brown, founder and CEO. This latest cash infusion will allow us to secure our footprint in the San Diego area and reach thousands of new people. For the remainder of this year we will attempt to strengthen our existing operations by continuing to reduce costs and improve profit margins. It is our goal to become EBITDA breakeven in Q1 ’08 and to post profits for the full year.”
Organic To Go’s locations can be found in the heart of multi-tenant office towers, on corporate campuses, college campuses, in hospitals and at Los Angeles International Airport. The company’s multi-channel business model includes retail, delivery and wholesale operations. Organic To Go’s mission is to become the leading branded provider of certified organic and natural soups, salads, sandwiches, entrees and other food products to corporate, university and other institutional customers in selected urban areas nationwide. All Organic To Go fare is made with organic ingredients whenever possible.
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