SCOTTSDALE, Ariz., June 4, 2014 /PRNewswire/ -- RiceBran Technologies (NASDAQ: RIBT) (RIBTW) (the "Company" or "RBT") a global leader in the production and marketing of value added products derived from rice bran, today announced it received shareholder approval to increase its authorized shares of common stock to 25,000,000 effective May 30, 2014. As a result, the Company will implement the plan detailed in its previously issued proxy statement for the Special Shareholder Meeting held on Friday May 30, 2014 and immediately eliminate debt obligations with a face value of $9.5 million through conversion into RBT common stock...
The approval by shareholders to increase the Company's authorized shares allows RBT to implement the planned conversion of notes with a face value totaling $6.2 million into RBT common stock at $5.25 per share and the conversion of $3.3 million in face value debt obligations related to the January 2014 acquisition of H&N, into RBT common stock at $6.00 per share. In addition to these debt conversions, the Company will also issue a total of approximately 1.7 million shares to satisfy obligations related to its November 7, 2013 agreements with certain debt and warrant holders for the cancellation of their warrants, for a reduction in interest rate from 10% to 5% and for the removal of conversion rights and ratchet provisions contained in the original debt agreements.
Upon issuance of the 3.4 million shares related to the above transactions, RBT will have a total of 6.4 million shares issued and outstanding, and will have eliminated USA Segment debt with a total face value of $9.5 million. The transactions will also result in a significant increase in shareholder equity.
W. John Short, CEO & President of RiceBran Technologies commented, "I want to thank our shareholders for their overwhelming support at last Friday's Special Shareholder Meeting where 80% of the votes cast voted to support the Company's recommendation to increase authorized shares to 25,000,000. This approval significantly strengthens our balance sheet and gives our company much greater financial flexibility to grow our business. We believe we are now in the right place at the right time to unlock the significant underlying value of our technology. We look forward to continuing to execute on our business plan to build lasting value for our Company and its stockholders."
Additional information can be found in the proxy statement for the Special Shareholder Meeting and the related Report on Form 8-K that were filed with the United States Securities and Exchange Commission on April 14, 2014 and June 3, 2014, respectively.
About RiceBran Technologies
RiceBran Technologies is a human food ingredient and animal nutrition 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 human food ingredient and animal nutrition products. Our target markets are human food ingredients and animal nutrition manufacturers and retailers, as well as natural food, functional food and nutraceutical supplement manufacturers and retailers, both domestically and internationally. More information can be found in the Company's filings with the SEC and by visiting our website at http://www.ricebrantech.com.
Forward-Looking Statements
This release contains forward-looking statements, including. These statements are made based on current expectations that are subject to known and unknown risks and uncertainties. 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 RiceBran Technologies' filings with the Securities and Exchange Commission, including its most recent periodic reports.
Investor Contact:
Ascendant Partners, LLC
Fred Sommer
+1 (732) 410-9810
fred@ascendantpartnersllc.com
SOURCE RiceBran Technologies
