SCOTTSDALE, Ariz., April 25, 2011 /PRNewswire/ -- NutraCea (NTRZ.pk), a world leader in production and marketing of stabilized rice bran (SRB), rice bran oil (RBO) and their derivative products, announced that on March 30, 2011, the United States Bankruptcy Court for the District of Arizona entered a final decree closing NutraCea's Chapter 11 bankruptcy proceedings. In accordance with the terms of its exit from Chapter 11, NutraCea continues to repay the remaining balance of its outstanding debt.
Ironridge Global IV, LTD. acquired outstanding NutraCea debt from a Company creditor and on April 7, 2011, NutraCea issued common stock to Ironridge in full and final settlement of the NutraCea debt obligations acquired by Ironridge. The shares issued to Ironridge are subject to adjustment based on post-trading prices of NutraCea common stock.
The Company believes that misconceptions may exist related to the filing of a Schedule 13G by Ironridge, including inaccurate speculation that 10,000,000 shares of NutraCea common stock may have been issued to Ironridge. NutraCea confirms that the transaction involved approximately $520,000 of debt which was exchanged for approximately 2,600,000 shares or 1.3% of outstanding NutraCea common stock.
NutraCea Chairman and CEO W. John Short commented, "We have received calls and emails from shareholders expressing concern about speculation on a message board that NutraCea may have issued 10,000,000 shares of our common stock to Ironridge. Our corporate policy is not to comment on information posted by speculators and others on the message boards; however, due to the number of inquiries and the magnitude of the misinformation we felt it necessary to clarify this situation in advance of normal filing requirements."
Additional information regarding this transaction will be available on normal filing schedules in NutraCea's upcoming Form 10-Q for the first quarter of 2011.
NutraCea is a world leader in production and marketing of stabilized rice bran (SRB), rice bran oil (RBO) and their derivative products. NutraCea holds many patents for stabilized rice bran (SRB) production technology and proprietary products derived from SRB. NutraCea's proprietary technology enables the creation of food and nutrition products to be unlocked from rice bran, normally an under utilized co-product of rice milling. NutraCea also produces consumer rice based health supplements which can be found at http://www.nutraceaonline.com. More information can be found in the Company's filings with the SEC and by visiting our website at http://www.NutraCea.com.