$RIBT RiceBran Technologies Sells SRB Business
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Posted On: 06/26/2023 8:33:15 AM
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$RIBT RiceBran Technologies Sells SRB Business
https://finance.yahoo.com/news/ricebran-techn...00770.html
Asset Sale is First Step of Previously Announced Strategic Review
TOMBALL, TX / ACCESSWIRE / June 26, 2023 / RiceBran Technologies (NASDAQ:RIBT) ("RiceBran" or the "Company"
, a global leader in the development and manufacture of nutritional and functional ingredients derived from rice and other small and ancient grains for food, nutraceutical, pet care and equine feed applications, today announced that it has sold its stabilized rice bran ("SRB" business for total consideration of approximately $3.5 million, consisting of $1.8 million in cash and the assumption of $1.7 million of the Company's real estate lease obligations on two operating facilities, to Stabil Nutrition, LLC.
The transaction is part of the previously disclosed strategic review by the Board of Directors who anticipate that, based upon first quarter 2023 results, this sale would decrease RiceBran's projected annual net loss by approximately $2.2 million, including the reduction in selling, general and administrative expenses of $1.3 million, while not jeopardizing the estimated $54.4 million in federal and $46.0 million in state net operating loss carryforwards that the Company had amassed as of December 31, 2022.
The assets sold include two Company-owned manufacturing facilities in Dillon, Montana and Mermentau, Louisiana, as well as two leased facilities in West Sacramento, California and Lake Charles, Louisiana.
Eric Tompkins, RiceBran's Executive Chairman, commented, "This transaction reduces our ongoing fixed costs and streamlines our organization while removing the impact of the derivatives business that has historically been challenged by production issues and increased competition. Further, this transaction provides us more flexibility as we continue to evaluate alternatives for our remaining assets."
Additional terms of the transaction will be disclosed in a Form 8-K to be filed with the Securities and Exchange Commission (the "SEC" .
https://finance.yahoo.com/news/ricebran-techn...00770.html
Asset Sale is First Step of Previously Announced Strategic Review
TOMBALL, TX / ACCESSWIRE / June 26, 2023 / RiceBran Technologies (NASDAQ:RIBT) ("RiceBran" or the "Company"
, a global leader in the development and manufacture of nutritional and functional ingredients derived from rice and other small and ancient grains for food, nutraceutical, pet care and equine feed applications, today announced that it has sold its stabilized rice bran ("SRB" business for total consideration of approximately $3.5 million, consisting of $1.8 million in cash and the assumption of $1.7 million of the Company's real estate lease obligations on two operating facilities, to Stabil Nutrition, LLC. The transaction is part of the previously disclosed strategic review by the Board of Directors who anticipate that, based upon first quarter 2023 results, this sale would decrease RiceBran's projected annual net loss by approximately $2.2 million, including the reduction in selling, general and administrative expenses of $1.3 million, while not jeopardizing the estimated $54.4 million in federal and $46.0 million in state net operating loss carryforwards that the Company had amassed as of December 31, 2022.
The assets sold include two Company-owned manufacturing facilities in Dillon, Montana and Mermentau, Louisiana, as well as two leased facilities in West Sacramento, California and Lake Charles, Louisiana.
Eric Tompkins, RiceBran's Executive Chairman, commented, "This transaction reduces our ongoing fixed costs and streamlines our organization while removing the impact of the derivatives business that has historically been challenged by production issues and increased competition. Further, this transaction provides us more flexibility as we continue to evaluate alternatives for our remaining assets."
Additional terms of the transaction will be disclosed in a Form 8-K to be filed with the Securities and Exchange Commission (the "SEC"
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