PHOENIX, March 14, 2011 /PRNewswire/ -- NutraCea (Pink Sheets: NTRZ), a world leader in stabilized rice bran (SRB) nutrient research and technology, today announced that on March 10, 2011 the Company entered into a Settlement and Release Agreement (the "Settlement Agreement") with Todd Crow, a former chief financial officer of the Company. The Settlement Agreement will become effective upon the entry of a Final Order approving it by the United States Bankruptcy Court for the District of Arizona.
Pursuant to the Settlement Agreement, Mr. Crow agreed to assign to NutraCea all of his shares and options, including 9,666 shares of the Company's common stock and options/warrants to purchase an additional 1,662,942 shares. Options/warrants to purchase 1,562,942 shares were issued at a strike price of $0.30 and the remaining 100,000 options/warrants were issued at a strike price of $1.49. In addition, Mr. Crow and a related entity, Crow & Associates, LLC, agreed to withdraw their claims against the Company, including previously filed claims by Mr. Crow (in an unspecified dollar amount) and by Crow & Associates in the amount of $189,774.91.
W. John Short, Chairman and CEO of NutraCea said, "The resolution of this litigation results in the withdrawal of all claims against the company, allows us to recover all shares and options held by Mr. Crow, frees up precious management time previously dedicated to this situation and avoids further legal expense to NutraCea. We are pleased to put this matter behind us."
This release may contain forward-looking statements. The Company 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 the Company's filings with the Securities and Exchange Commission, including the Company's most recent periodic report.
NutraCea is a world leader in production and utilization of stabilized rice bran. 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 a waste by-product of standard rice processing. NutraCea also produces consumer Rice Bran 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.