RiceBran Technologies Announces $8M Private Placement of Debt and Equity
13 Feb 2017 --- RiceBran Technologies, a global leader in the production and marketing of value-added products derived from rice bran, has entered 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 intends 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. Commenting on the financing, Dr. Robert Smith, CEO of RiceBran Technologies, stated, "The completion of this capital infusion is an important inflection point in positioning our Company for future growth in order to build significant shareholder value. With this capital we now have the ability to move forward with our aggressive business plans and streamlining efforts designed to drive future sales growth and greatly improve our financial performance.” “We are confident that the marked reduction in debt service costs coupled with the operating efficiencies, we believe we can obtain through the relocation of a majority of our operations to California in the heart of rice country, will set the stage for us to meet the ingredient needs of large CPG and specialty food companies. It will also enable us to achieve a significant improvement in operating cash to fuel future growth. Our products are perfectly positioned to meet growing consumer demand for non-GMO foods that contain protein, fiber and are rich in antioxidants. We look forward to using this capital to deliver positive results for our shareholders in 2017 and beyond." Brent Rosenthal, Chairman of the Board of Directors of RiceBran Technologies, also commented, "RiceBran Technologies has been undergoing a major transformation in the past several months since I became the Chairman and this financing is a very large step forward in reaching our goal of generating significant shareholder value. We have significantly increased the food industry experience of our board and management team and together we have laid out a comprehensive vision to monetize the intrinsic value of our intellectual property through the execution of a strategic plan to target large CPG opportunities. This financing removes a large overhang of debt service and provides us with capital to begin the realignment of our operations and upgrade of our facilities to meet the stringent food safety standards of large CPG companies while reducing inefficiencies. Our singular objective is to unlock the significant value of our proprietary ingredients and products and we look forward working together to build lasting value in the coming years for the benefit of our stockholders." To contact our editorial team please email us at editorial@cnsmedia.com 
Related ArticlesFood Ingredients News “Switch to natural”: Solvay eyes growing potential for natural vanillin solutions
18 Feb 2019 --- Driven by concerns around food safety and the need for improved transparency, consumers increasingly seek foods that are simple and contain familiar ingredients. For the US food market, Solvay is now offering a new, natural vanillin further extending its current portfolio of natural and nature-inspired ingredients. Catering to this rising consumer demand for GMO-free, natural and “true-to-nature” products, Solvay has developed a full range to answer the “switch to natural” demand, according to Lucie Morpain, Food & Beverages and Americas Market Manager. Food Ingredients News Are US-China trade tensions easing? Striking a deal to finalize an end to excessive tariffs
18 Feb 2019 --- As the clock counts down to March 1, the deadline for the US-China trade conflict truce to come to an end, both countries say they are making positive progress towards ending the trade dispute that has seriously impacted commodities for months. Talks continue this week in Washington after negotiations in Beijing failed to finalize a deal to end the trade war last week. However, as the food industry continues to closely monitor progress, hopes are high that an end is in sight and a return to excessive tariffs will be avoided. Food Ingredients News Yolkin’ around: Egg replacement ingredients soar, and it’s not just veganism boosting demand
18 Feb 2019 --- Egg replacements have found a significant market in recent years with potential for further growth in the pipeline. There are several reasons behind this ongoing development. The availability and price of eggs are subject to seasonal fluctuations which can influence the end products’ profitability, meaning that manufacturers who use eggs on a large scale are seeking economical alternatives. Many consumers are adopting plant-based lifestyles, which avoid the consumption of any ingredients derived from animals. According to many suppliers, the rising demand for egg replacement ingredients is related to the mainstreaming of veganism and the even more popular flexitarian trend, both of which are gaining traction in consumer groups globally. Food Ingredients News More scrutiny needed for less-deadly foodborne bacteria, say researchers
15 Feb 2019 --- Employing advanced genetic-tracing techniques and sharing the data produced in real time could limit the spread of bacteria – Bacillus cereus – which causes foodborne illness, according to researchers. As part of a recent study, researchers at Penn State University implemented whole-genome sequencing of a pathogen-outbreak investigation, following an outbreak of foodborne illnesses in New York in 2016. Food Ingredients News BI Nutraceuticals strengthens Canada presence with Brenntag partnership
15 Feb 2019 --- US-based ingredients supplier BI Nutraceuticals (BI) is partnering with food and nutrition experts Brenntag Canada Inc. to strengthen its reach in Canada. The partnership will allow Brenntag to widen its portfolio to include ingredients that are healthier, natural and on-trend, according to both companies. |
