SEATTLE Organic To Go Inc., parent company to 12 namesake fast-casual cafes and an additional 45 retail locations selling certified organic and natural soups, salads and sandwiches, completed a reverse merger to go public Tuesday.
In its first day of trading on the over-the-counter bulletin board, Organic To Go's stock price rose 41.7 percent to close at $4.25 per share.
The company is now the only wholly owned subsidiary of SP Holdings Corp., the public company into which Organic To Go merged. The company will trade under SP Holding's former ticker symbol SPHG.OB.
In addition to the merger, Organic To Go completed the first phase of a $6.5 million private placement consisting of common stock and warrants, the company said. It raised $4.7 million with the balance due on or before Feb. 19. Organic To Go also had an additional $5.6 million of debt converted into equity.
"We believe it is in the best interests of our company, and the time is right, to become a public company," said Jason Brown, the company's founder, chairman and chief executive. "Organic To Go can now more confidently continue its aggressive business strategy - to grow our business both internally and via future acquisitions."