SACRAMENTO, California,
July 14, 2017 /PRNewswire/ --
RiceBran
Technologies (NASDAQ: RIBT)(NASDAQ: RIBTW) ("RBT" or
"Company"), a global leader in the production and marketing of
value-added products derived from rice bran, today announced that
the Company has sold its contract manufacturing and packaging
subsidiary, Healthy Natural, Inc., to an affiliate of Rosewood
Private Investments.
"We are pleased to have completed the sale of Healthy Natural as
part of our plan to improve shareholder value creation by focusing
on RBT's ingredients business," said Robert
Smith, Chief Executive Officer of RBT. "We were also
pleased to sell the business to an established and successful
industry participant like Rosewood, whose success in this segment
should well serve the Healthy Natural customer base."
RBT was paid $18.3 million for the
Healthy Natural business. RBT will use a portion of the sale
proceeds to eliminate senior debt and subordinated notes with face
value totaling $12.5 million, to pay
transaction-related costs, and to increase cash and cash
equivalents (RBT had cash and cash equivalents of $3.4 million as of March
31, 2017). The gain on the sale will also increase
shareholders' equity, which totaled $7.9
million on March 31, 2017.
Allegiance Capital Corporation of Dallas, Texas, was engaged to advise RiceBran
Technologies in this sale.
"By eliminating our senior debt and subordinated notes and
improving liquidity and our equity funding," Brent Rystrom, RBT Chief Financial Officer
added, "we believe we are now positioned to increase our efforts in
the markets for stabilized rice bran and derivative products
ingredients, and we are excited for the opportunities awaiting us.
We view this as an important step in our plans to create
improved shareholder value and look forward to updating our
progress on these efforts in the future."
About RiceBran Technologies
RiceBran Technologies is a food and animal feed ingredient
company focused on the procurement, bio-refining and marketing of
numerous products derived from rice bran. RiceBran Technologies has
proprietary and patented intellectual property that allows us to
convert rice bran, one of the world's most underutilized food
sources, into a number of highly nutritious food and feed
ingredient products. Our global target markets are food and feed
manufacturers and retailers, as well as specialty food, functional
food and nutritional supplement manufacturers and retailers. More
information can be found in the Company's filings with the SEC and
by visiting our website at http://www.ricebrantech.com.
About Rosewood Private Investments
Rosewood Private Investments is the private equity arm of
The Rosewood Corporation, a family-backed yet institutional firm
with diverse worldwide operations and investments. Rosewood
is wholly owned by the Caroline Hunt Trust Estate, which was
established in 1935 by H.L. Hunt and
built upon over generations by developing and acquiring businesses
that are leaders in their respective industries. Rosewood's
structure and history enable the firm to be a unique resource and
flexible investment partner. As an evergreen entity, Rosewood is
continually seeking to invest capital in companies that share a
commitment to entrepreneurism, integrity and sound business
principles. While a generalist investor, Rosewood has a
particular focus in the nutrition and wellness, aerospace,
manufacturing technologies and environmental services sectors.
About Allegiance Capital Corporation
Allegiance Capital Corporation, headquartered in Dallas, is a premier, private investment bank
focused on M&A, financings and other financial advisory
services for leading North American companies.
(http://www.allcapcorp.com)
Forward-Looking Statements-portion of additional
disclosure
This release contains forward-looking statements, including, but
not limited to, statements about RiceBran Technologies'
expectations regarding growth and building future value. These
statements are made based upon current expectations that are
subject to known and unknown risks and uncertainties, including the
risk that if RBT determines to complete a reverse stock split in
the future, RBT's shareholders may not provide the requisite
approval. RiceBran Technologies does not undertake to update
forward-looking statements in this news release to reflect actual
results, changes in assumptions or changes in other factors
affecting such forward-looking information. Assumptions and other
information that could cause results to differ from those set forth
in the forward-looking information can be found in this press
release and in RiceBran Technologies' filings with the Securities
and Exchange Commission, including its most recent periodic
reports.
Investor Contact:
Ascendant Partners, LLC
Richard Galterio
+1-732-410-9810
rich@ascendantpartnersllc.com
SOURCE RiceBran Technologies