SCOTTSDALE, Arizona, March 24, 2016 /PRNewswire/ --
RiceBran Technologies (NASDAQ: RIBT and RIBTW) (the "Company" or "RBT"), a global leader in the production and marketing of value added products derived from rice bran, announced today that it has completed the legal process necessary for the release of the US$1.9 million that has been held in escrow at a San Francisco bank since the Company's acquisition of Irgovel in 2008.
As previously disclosed, the Company received a final judgment in its favor for a total of US$1.9 million plus interest from the US District Court for the District of Arizona in January, 2016 related to an arbitral award of R$7.8 million, including interest and penalties, from a Brazilian arbitration panel. After completing the necessary processes with the California Courts to enforce the judgment, the Company has received and presented definitive legal documents from the California Court to the escrow agent at the bank clearing the way for the release of funds and expects that the US$1.9 million will be released to the Company before the end of the month. After release of the escrow funds, the Company has remaining claims of approximately R$ 2.8 million that will be pursued against assets held by the defendants in Brazil.
W. John Short, CEO and President, commented: "We are pleased to have received a definitive instruction from the California Court instructing the escrow agent to release the escrow funds. The final release of US$1.9 million will close the book on our 2008 purchase of Irgovel. We will use the proceeds of the escrow release to pay down a portion of our USA segment debt and to provide additional working capital to support growth in our USA Segment."
About RiceBran Technologies
RiceBran Technologies is a human food ingredient and animal nutrition company focused on the procurement, bio-refining and marketing of numerous products derived from rice bran. RiceBran Technologies has proprietary and patented intellectual property that allows us to convert rice bran, one of the world's most underutilized food sources, into a number of highly nutritious human food ingredient and animal nutrition products. Our target markets are human food ingredients and animal nutrition manufacturers and retailers, as well as natural food, functional food and nutritional supplement manufacturers and retailers, both domestically and internationally. More information can be found in the Company's filings with the SEC and by visiting our website at http://www.ricebrantech.com.
This release contains forward-looking statements, including, but not limited to, statements about RiceBran Technologies' expectations regarding recovery of funds from an escrow account related to the 2008 purchase of Irgovel. These statements are made based upon current expectations that are subject to known and unknown risks and uncertainties. RiceBran Technologies does not undertake to update forward-looking statements in this news release to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking information. Assumptions and other information that could cause results to differ from those set forth in the forward-looking information can be found in this press release and in RiceBran Technologies' filings with the Securities and Exchange Commission, including its most recent periodic reports.
Investor Contact: Ascendant Partners, LLC Fred Sommer +1-(732)-410-9810 firstname.lastname@example.org
Source: RiceBran Technologies
SOURCE RiceBran Technologies