NutraCea, Food Trading Dominicana form joint entity
To be equally owned by NutraCea and Food Trading Company Dominicana, S.A. and is anticipated to generate $21.6 million in product revenue over the next two years.
16/09/05 NutraCea has announced that it has signed a definitive agreement to establish a joint entity with Food Trading Company Dominicana, S.A. The joint entity will be equally owned by NutraCea and Food Trading Company Dominicana, S.A. and is anticipated to generate $21.6 million in product revenue over the next two years. The joint entity will distribute a nutritionally-rich beverage made from stabilized rice bran to at least 200,000 children per day through a government-sponsored school feeding program.
Initial shipments are anticipated to begin prior to the end of November, 2005.
This agreement doubles the servings per day requirement contemplated by the letter of intent previously executed by the parties and includes provisions to increase the number of servings in years 3 and 4 to at least 800,000 per day.
NutraCea is a leader in stabilized rice bran nutrient research and dietary supplement development. The Company has developed intellectual property to create a range of proprietary product formulations, delivery systems and whole food nutrition products. NutraCea's proprietary technology enables the creation of food and nutrition products from rice bran, normally a waste by- product of standard rice processing. In addition to its whole foods products, NutraCea develops families of health-promoting "nutraceuticals," including natural arthritic relief and cholesterol-lowering products, and all-natural "cosmeceutical" beauty aids.
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