NutraCea Announces Sale of Natural Glo, Satin Finish, and Max-E-Glo Brands and Trademarks
This sale is another step in our previously announced asset monetization and restructuring plan that will allow our team to focus on building profitable sales in our core product groups.
19 Mar 2010 --- NutraCea, a world leader in stabilized rice bran (SRB) nutrient research and technology, announced the Company signed an asset purchase agreement to sell the rights to NutraCea's Natural Glo, Satin Finish, and Max-E-Glo equine brands and trademarks, the goodwill and all other intellectual property associated with the trademarks to Manna Pro Products, LLC (Manna Pro) for approximately $650,000. NutraCea will also sell to Manna Pro certain bags, packaging materials and bagged inventory at NutraCea's cost. NutraCea has agreed not to sell equine positioned stabilized rice bran products to certain specified customers that have previously purchased SRB under the trademarks being purchased by Manna Pro.
Additionally, NutraCea and Manna Pro will enter into a supply agreement upon closing the asset sale under which NutraCea will be the exclusive supplier of stabilized rice bran to Manna Pro for the product lines associated with the purchased assets. All products sold by Manna Pro under the trademarks being purchased will be co-branded with a NutraCea stabilized rice bran logo.
W. John Short, Chairman and CEO of NutraCea, stated, "We are very pleased to have agreed to this asset sale and co-branded supply arrangement. Manna Pro is a recognized leader in the animal nutrition industry with significantly broader distribution capabilities than NutraCea. The sale of these equine brands allows NutraCea to step back from managing brands in competition with Manna Pro and other important customers, and to focus on our core competency of supplying stabilized rice bran in bulk to all of our animal and human nutrition customers. We look forward to working with the Manna Pro team to significantly increase the business we do together.
"This sale is another step in our previously announced asset monetization and restructuring plan that will allow our team to focus on building profitable sales in our core product groups including stabilized rice bran, defatted bran, rice bran oil and nutraceutical and pharmaceutical products derived from stabilized rice bran."
Completion of the asset sale is subject to a variety of customary closing conditions and the approval of the transaction by the U.S. Bankruptcy Court.
On November 10, 2009 NutraCea filed for court supervised protection to restructure its operation under Chapter 11 of the US Bankruptcy Code.
