Deal funds plant upgrades and capacity expansion to accelerate growth
By Devika Patel
Knoxville, Tenn., March 21 - RiceBran Technologies said it completed a $4.9 million private placement of convertible notes. Maxim Group LLC was the lead agent and Dawson James Securities, Inc. was a co-placement agent.
Each note is convertible into common shares at $5.25 per share, which represents a 3.14% premium to $5.09, the March 20 closing share price. The notes will automatically convert once shareholder approval is obtained.
Investors also received warrants for about 1.4 million shares. Each of the warrants is exercisable at $5.25, which is also a 3.14% premium to the March 20 closing price.
Proceeds will be used for plant upgrades and capacity expansion to accelerate growth opportunities and as working capital for the company's Irgovel rice bran bio-refinery in Brazil.
The Scottsdale, Ariz., company produces human and animal food products derived from rice bran.
| Issuer: | RiceBran Technologies
|
| Issue: | Convertible notes
|
| Amount: | $4.9 million
|
| Conversion price: | $5.25
|
| Warrants: | For about 1.4 million shares
|
| Warrant strike price: | $5.25
|
| Agent: | Maxim Group LLC (lead), Dawson James Securities, Inc. (co-placement agent)
|
| Settlement date: | March 21
|
| Stock symbol: | Nasdaq: RIBT
|
| Stock price: | $5.09 at close March 20
|
| Market capitalization: | $13.7 million
|
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