RIBT RiceBran enters supply agreement with Golden

RIBT RiceBran enters supply agreement with Golden Ridge Rice Mills RiceBran Technologies announced that it has entered into a stabilized rice bran supply agreement with Golden Ridge Rice Mills, a state-of-the-art milling operation located in Wynne, Arkansas. As part of the agreement, RBT has also secured an option to acquire the assets of Golden Ridge Rice Mills. The new three year Supply Agreement calls for Golden Ridge to supply RiceBran Technologies with at least 9.6M pounds of SRB annually, which would represent a 32% increase in the company's SRB supply when compared to the total 2017 SRB production volume. In order to fulfill that obligation, Golden Ridge is building a new SRB production facility that is expected to begin production no later than August 1, 2018. RBT has agreed to lend $400,000 to Golden Ridge and an additional $165,000 for the purchase of equipment from RBT to complete the upgrades to Golden Ridge's SRB storage and production capabilities. These loans will be repaid by Golden Ridge through discounting the price of delivered SRB, with any unpaid amounts payable in cash in 18 months. As part of the Supply Agreement, RiceBran Technologies has secured a six-month option to purchase Golden Ridge's milling assets. Upon exercising that option, RBT will have 120-days from the exercise date to complete the purchase of the milling business assets. It is anticipated by the company that the Golden Ridge milling assets purchase would include a combination of the assumption of certain liabilities and the issuance of RBT common stock.

Read more at:
https://thefly.com/landingPageNews.php?id=2755188