Continental Grain Company to acquire 16 percent stake in RiceBran Technologies
15 Sep 2017 --- One of the oldest food and agribusiness firms in the world, Continental Grain Company, is making a significant investment in RiceBran Technologies (RBT) which has proprietary and patented intellectual property that allows it to convert rice bran into food and specialty ingredient products. Continental Grain Company has entered into an agreement to purchase 2.7 million shares of common stock from the company for US$2.9 million.
The total number of shares issued to Continental Grain Company represents 16 percent of RBT’s issued and outstanding common stock on a post transaction basis.
“We are pleased that Continental Grain Company is making a significant investment in our company’s future,” says Dr. Robert Smith, President and CEO of RBT. “Continental Grain Company is one of the oldest food and agribusiness companies in the world with a long history of pursuing strategic investment opportunities in food and agribusiness.”
Established in 1813 as a grain trading firm based in what is now known as Arlon (Belgium), Continental Grain Company grew to become one of the largest privately held companies in the world.
Arizona-headquartered RiceBran Technologies specializes in the production and marketing of value added products derived from rice bran.
In February 2017, the company announced that it hadentered 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 revealed that it was intending 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.
“The RBT team has made substantial progress in the past year towards its strategic objectives, from focusing on its rice bran business to significantly strengthening its financial condition and lowering operating costs,” says Ari Gendason, Senior Vice President, Corporate Investments at Continental Grain Company and a member of RBT’s Board of Directors.
“RBT’s stabilized rice bran and proprietary ingredient products provide better-for-you ingredients that consumers are increasingly demanding from food companies and Continental Grain Company has a long history of seeking out expansion opportunities in this space making this a good strategic fit for both companies. We look forward to RBT’s continued progress.”
