Deal funds plant upgrades and capacity expansion to accelerate growth
By Devika Patel
Knoxville, Tenn., May 21 - RiceBran Technologies completed a $1.25 million second tranche of a $6.15 million private placement of convertible notes on May 19, according to an 8-K filed Wednesday with the Securities and Exchange Commission. Maxim Group LLC was the lead agent and Dawson James Securities, Inc. was a co-placement agent for the deal, which raised $4.9 million on March 21.
Interest accrues on the notes at 5%, and the interest increases to 15% on Sept. 1. Investors may put the convertibles.
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 in the first tranche and warrants for 357,075 shares in the second. 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: | $6,149,762
|
| Coupon: | 5% until Sept. 1, 15% after Sept. 1
|
| Conversion price: | $5.25
|
| Put: | Yes
|
| Warrants: | For about 1,757,075 shares
|
| Warrant strike price: | $5.25
|
| Agent: | Maxim Group LLC (lead), Dawson James Securities, Inc. (co-placement agent)
|
| Settlement date: | March 21 (for $4.9 million), May 19 (for $1,249,763)
|
| Stock symbol: | Nasdaq: RIBT
|
| Stock price: | $5.09 at close March 20
|
| Market capitalization: | $13.7 million
|
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