THE WOODLANDS, Texas, March 8, 2019 /PRNewswire/ -- RiceBran Technologies (RIBT) (the "Company" or "RIBT"), a global leader in the production and marketing of value added products derived from stabilized rice bran (SRB), today announced that it has completed, with strategic and institutional investors including Continental Grain Company, DG Capital Management and Dillon Hill Capital, a private placement of 3,046,668 shares of common stock and a pre-funded warrant exercisable into 1,003,344 shares of common stock for aggregate gross proceeds of approximately $12.140 million.
The Company intends to use net proceeds from the offering for strategic initiatives, including a significant expansion of the production capacity and construction of a world-class bran room capable of producing new, innovative, and technology-driven SRB products at its Golden Ridge Rice Mills facility in Wynne, AK, and a potential tuck-in acquisition. The remaining net proceeds will be used as working capital to support growth of the Company's rice bran ingredient business in both the human and animal nutrition markets.
Commenting on the financing, Brent Rystrom, CEO of RiceBran Technologies, stated, "The completion of this financing is an important inflection point in positioning our Company for future growth in order to build significant shareholder value. This financing, along with the existing cash on our balance sheet, enables us to commence execution of our strategic plan by expanding the rice milling capacity and building a state-of-the-art bran production facility at our Golden Ridge plant which will provide us the capability of using new technology and processes to manufacture our next generation of SRB products for large market opportunities that we have identified. The financing also positions us to pursue a strategic tuck-in acquisition opportunity that we are currently evaluating. We believe our products are perfectly positioned to meet growing consumer demand for foods that are healthy, natural, and non-GMO, and we look forward to using this capital to deliver positive returns for our shareholders in 2019 and beyond."
The Company issued 3,046,668 shares of common stock at $3.00 per share and sold to a single investor a pre-funded warrant exercisable into 1,003,344 shares of common stock for $2.99 per share with an exercise price of $0.01 per share.
Ari Gendason, Chief Investment Officer of Continental Grain Company, also commented, "We are pleased with RiceBran Technologies' progress and excited for the opportunity to invest an additional $5M to help finance strategic initiatives. In addition, we split our investment between common stock and a pre-funded warrant which will become exercisable upon shareholder approval."
Lake Street Capital Markets, LLC served as placement agent for the transaction.
About RiceBran Technologies
RiceBran Technologies is a specialty ingredient company servicing the food, animal nutrition, and specialty ingredient products markets. We utilize our proprietary and patented intellectual property to convert rice bran, one of the world's most underutilized food sources, into a number of highly nutritious and clean label ingredient products. The global target markets for our products include food and animal nutrition 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.
This release contains forward-looking statements, including, but not limited to, statements about RiceBran Technologies' expectations related to the expansion of the Golden Ridge Rice Mills facility; production of new SRB products; and the potential acquisition opportunity identified by the Company. These statements are made based upon current expectations that are subject to known and unknown risks and uncertainties, including but not limited to, the ability of the Company to complete the expansion projects, the acceptance of any new SRB products introduced by the Company, and the completion of the acquisition opportunity on terms that are acceptable to the Company. 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.
Ascendant Partners, LLC
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