NutraCea Completes Sale of Natural Glo, Satin Finish, Max-E-Glo Brands & Trademarks to Manna Pro
At the closing, Manna Pro and NutraCea entered into an exclusive supply agreement under which NutraCea will be the exclusive supplier of SRB to Manna Pro for the product lines associated with the purchased assets.
23 Apr 2010 --- NutraCea, a world leader in stabilized rice bran (SRB) nutrient research and technology, announced that it completed the previously announced sale of NutraCea's rights to Natural Glo, Satin Finish, and Max-E-Glo equine brands and trademarks, related goodwill and intellectual property along with certain bags, packaging materials and bagged inventory to Manna Pro Products, LLC (Manna Pro) for a total consideration of $753,484.
NutraCea determined that it would record in the fourth quarter of 2009 approximately $1.6 million in non-cash charges of impairment related to the trademark assets. NutraCea does not expect to be required to make any future cash expenditures as a result of this impairment.
At the closing, Manna Pro and NutraCea entered into an exclusive supply agreement under which NutraCea will be the exclusive supplier of SRB 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 SRB logo.
W. John Short, Chairman and CEO, commented, "We believe the sale of these equine brands to Manna Pro and our exclusive, co-branded supply arrangement is a win-win for both of our companies. Manna Pro's larger sales force and distribution organization has the ability to increase sales for these brands, which should result in increased bulk sales of SRB for NutraCea. We look forward to working closely with the Manna Pro team to support the growth of these brands."
On November 10, 2009 NutraCea filed for court supervised protection to restructure its operation under Chapter 11 of the US Bankruptcy Code.
