NutraCea, RiceX complete merger
It is anticipated that the merged companies will provide a platform for new growth opportunities, both domestically and internationally.
06/10/05 NutraCea and the RiceX Company have announced the completion of their merger transaction following approvals by both companies' stockholders and directors. The transaction was finalized on October 4, 2005. As a result of the merger, each share of RiceX stock was converted into the right to receive approximately .76 shares of NutraCea stock, and RiceX shares will no longer be publicly traded.
As part of the merger process, NutraCea raised additional capital in the amount of $7,850,000 less certain expenses, which will be utilized in part to repay an outstanding credit facility of $2,400,000, plus accrued interest. This financing allows NutraCea to proceed with a debt free balance sheet and millions of dollars of new working capital. The complete terms of the financing are disclosed in a separate filing and can be accessed with NutraCea's and RiceX's reports filed with the SEC.
In addition, as part of the merger process, Patty McPeak resigned as the Chief Executive Officer of NutraCea, but will continue as an employee and director of NutraCea. Brad Edson was appointed as the new Chief Executive Officer. In addition, the appointed officers of the combined company agreed to a restriction on any sale of their shares until December 31, 2007.
It is the anticipated by management that the merged companies will provide a platform for new growth opportunities, both domestically and internationally. Additionally, the combination of intellectual property portfolios should allow for greater protection of the combined company's proprietary stabilization technology, and patented value added processing methods. NutraCea looks forward to deploying their technology in rice producing nations and providing its products to customers both domestically and internationally.
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.
The RiceX Company manufactures and distributes nutritionally dense foods and food ingredients made from rice bran stabilized thought the company's proprietary technology and processes. RiceX believes it is the only company in the world that can deliver all natural, nutritionally dense stabilized rice bran products with the shelf life and nutritional profile demanded by most commercial users.
