RiceBran Technologies Announces $8M Private Placement of Debt and Equity

bb4d3642-e2e6-42ee-8ebb-29a1b860ce36articleimage.jpg

13 Feb 2017 --- RiceBran Technologies, a global leader in the production and marketing of value-added products derived from rice bran, has entered into definitive agreements with a group of accredited investors for the purchase of $6 million of non-convertible original issue discount debentures and $2 million of convertible preferred stock.

The Company intends to use net proceeds from the offering to repay approximately $4.2 million in debt, including the repayment of all of its outstanding debt with Great Elm Capital (formerly Full Circle Capital). The remaining proceeds, net of expenses, will be used as working capital to fuel the growth of the Company's rice bran ingredient business in both the food-grade and animal nutrition markets as well as to begin the implementation of the Company's strategic business realignment to improve overall operating efficiencies.

Commenting on the financing, Dr. Robert Smith, CEO of RiceBran Technologies, stated, "The completion of this capital infusion is an important inflection point in positioning our Company for future growth in order to build significant shareholder value. With this capital we now have the ability to move forward with our aggressive business plans and streamlining efforts designed to drive future sales growth and greatly improve our financial performance.”

“We are confident that the marked reduction in debt service costs coupled with the operating efficiencies, we believe we can obtain through the relocation of a majority of our operations to California in the heart of rice country, will set the stage for us to meet the ingredient needs of large CPG and specialty food companies. It will also enable us to achieve a significant improvement in operating cash to fuel future growth. Our products are perfectly positioned to meet growing consumer demand for non-GMO foods that contain protein, fiber and are rich in antioxidants. We look forward to using this capital to deliver positive results for our shareholders in 2017 and beyond."

Brent Rosenthal, Chairman of the Board of Directors of RiceBran Technologies, also commented, "RiceBran Technologies has been undergoing a major transformation in the past several months since I became the Chairman and this financing is a very large step forward in reaching our goal of generating significant shareholder value. We have significantly increased the food industry experience of our board and management team and together we have laid out a comprehensive vision to monetize the intrinsic value of our intellectual property through the execution of a strategic plan to target large CPG opportunities. This financing removes a large overhang of debt service and provides us with capital to begin the realignment of our operations and upgrade of our facilities to meet the stringent food safety standards of large CPG companies while reducing inefficiencies. Our singular objective is to unlock the significant value of our proprietary ingredients and products and we look forward working together to build lasting value in the coming years for the benefit of our stockholders."

To contact our editorial team please email us at editorial@cnsmedia.com

Related Articles

Food Ingredients News

Faravelli CEO talks cleaner labels, natural preservation & expansion plans

18 Jun 2018 --- Italian company Faravelli has grown from a small trading company to a global supplier of food and pharmaceutical ingredients, as well as supplying cosmetic and biochemical industries with ingredients. According to the company, 35 percent of its business is for the food and supplement industry, where Faravelli believes that there is a vast amount of innovation and activity.

Food Ingredients News

Acrylamide reduction: DeutscheBack’s new enzyme system cuts carcinogen in baking process

15 Jun 2018 --- Baking ingredient specialist DeutscheBack has created a new enzyme system to reduce acrylamide in biscuits, wafers, bread and rolls. Keeping pace with the newly-introduced European Union legislation that came into effect in April, the member of the independent, owner-managed Stern-Wywiol Gruppe in Hamburg has come up with an innovative solution to help eliminate the potentially carcinogenic chemical compound.

Packaging & Technology News

KHS Direct Print leads Brouwerij Martens’ beer campaign to World Cup success

15 Jun 2018 --- In celebration of the soccer World Cup, family-owned Belgium brewers, Brouwerij Martens, is offering its premium beer in 32 country-specific bottle designs on the French market. Various images of the participating nations have been printed straight onto the PET bottles using Direct Print Powered by KHS.

Food Ingredients News

World Cup flavor fever: Russian blends and cuisines take center stage

15 Jun 2018 --- With football World Cup hosts Russia opening up their campaign with a 5-0 drubbing of Saudi Arabia yesterday, a higher sense of optimism now exists around the national team, despite their lowly world ranking and recent form. Flavors and cuisines from the hosting country are also in the spotlight. World Cups and Olympic Games offer consumers the chance to try out new cuisines from the spotlighted host countries and this year is no exception, with a wealth of flavors and cuisines on offer from this vast and diverse country.

Food Ingredients News

“Misleading” labels: BEUC criticizes artisanal marketing, calls for tightened EU rules

14 Jun 2018 --- The European Consumer Organization (BEUC) has accused some food manufacturers of using “misleading tricks” on labels by using certain words and phrases that could be seen as “deceptive practices.” At the same time, the BEUC is calling for stronger regulation from the government on what can and cannot be on the label in a bid to eliminate some of the practices currently going on across Europe. The new report entitled “Food labels: tricks of the trade” highlights three practices that, according to the BEUC, “sugar-coat the actual quality of foods and drinks.”

More Articles