$RIBT big plans https://www.benzinga.com/pressr
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Posted On: 03/08/2019 7:43:34 PM
$RIBT big plans
https://www.benzinga.com/pressreleases/19/03/...-led-by-co
RiceBran Technologies (NASDAQ: 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.
https://www.benzinga.com/pressreleases/19/03/...-led-by-co
RiceBran Technologies (NASDAQ: 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.
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