SACRAMENTO, California, May 31, 2017 /PRNewswire/ --
RiceBran Technologies (NASDAQ: RIBT and RIBTW) ("RBT" or "Company"), a global leader in the production and marketing of value added products derived from rice bran, today announced that, on May 25, 2017, the Company received a letter from The Nasdaq Stock Market LLC ("Nasdaq") stating that the Company has regained compliance with Listing Rule 5550(b)(1), which requires maintenance of a minimum of $2.5 million stockholders' equity in order to remain listed on The Nasdaq Capital Market.
As previously disclosed, on April 24, 2017, the Company received a decision letter from Nasdaq stating that the Hearings Panel (the "Panel") had granted the Company's request for continued listing provided that, on or before May 15, 2017, the Company shall have announced in a public filing (via Form 8-K or Form 10-Q) that it has equity of over $2.5 million. The Company also at that time had to provide the Panel with updated projections showing stockholders' equity through May 2018.
On May 12, 2017, the Company reported stockholders' equity of $7.8 million in its Form 10-Q filing with the Securities and Exchange Commission for the period ended March 31, 2017. The increase in stockholders' equity resulted from a March 31, 2017 agreement with Alothon Group, LLC ("Alothon"), its minority co-investor in Nutra SA, that terminated Alothon's roll-up rights, a process that would have allowed Alothon to swap its equity position in Nutra SA for an equivalent value of RBT common stock. The elimination of those rollup rights allowed the Company to reclassify approximately $9.6 million of derivative warrant liability to stockholders' equity effective March 31, 2017.
The Nasdaq letter received on May 25, 2017 confirmed that RBT has regained compliance with the minimum stockholders' equity requirement for continued listing of the Company's securities on The Nasdaq Stock Market and that the Panel has closed this matter.
Separately, and also as previously disclosed, RBT must regain compliance with Nasdaq's $1 minimum bid price requirement prior to the expiration of the automatic grace period provided for by Nasdaq rules, which currently affords the Company until September 6, 2017 to cure the issue. This can be resolved by demonstrating the closing bid price of the Company's common shares of at least $1 per share for a minimum of ten consecutive trading days. If this appears unlikely as September 6, 2017 approaches, the Company is committed to taking actions that would enable it to regain compliance, including, if necessary, completing a reverse split of its common stock to increase its share price above the $1 minimum bid price.
About RiceBran Technologies
RiceBran Technologies is a food and animal feed ingredient 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 food and feed ingredient products. Our global target markets are food and feed manufacturers and retailers, as well as specialty food, functional food and nutritional supplement manufacturers and retailers. More information can be found in the Company's filings with the SEC and by visiting our website at http://www.ricebrantech.com.
Forward-Looking Statements-portion of additional disclosure
This release contains forward-looking statements, including, but not limited to, statements about RiceBran Technologies' expectations regarding the potential completion of a reverse stock split. These statements are made based upon current expectations that are subject to known and unknown risks and uncertainties, including the risk that if RBT determines to complete a reverse stock split in the future, RBT's shareholders may not provide the requisite approval. 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.
Ascendant Partners, LLC
SOURCE RiceBran Technologies