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RiceBran Technologies, Irgovel and Cooperativa Agroindustrial de Alegrete Ltda Enter Into Rice Bran Supply Agreement

Irgovel to install RBT extruders in CAAL's rice mill in exchange for exclusive rights to purchase raw rice bran


News provided by

RiceBran Technologies

Apr 30, 2015, 08:30 ET

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Scottsdale, Ariz., April 30, 2015 /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 its Brazilian subsidiary Irgovel has entered into an agreement with Cooperativa Agroindustrial de Alegrete Ltda ("CAAL"), a Brazilian rice growing and milling cooperative located in Alegrete, Rio Grande do Sul, Brazil, to install RBT's proprietary extruders in CAAL's rice milling facility in exchange for exclusive rights to purchase and stabilize rice bran produced as a by-product of CAAL's rice milling business.

As part of the agreement, Irgovel will install two of RBT's proprietary extruders in CAAL's Alegrete rice mill.  In return, CAAL will construct a building for the processing of raw rice bran and storage of the stabilized rice bran.  Irgovel will have a right of first refusal to purchase all raw rice bran from CAAL. The construction of the facility and the installation of equipment is expected to be completed within the next 180 days.  Upon completion of the project CAAL will begin shipping stabilized rice bran to Irgovel for oil extraction.

W. John Short, CEO and President of RBT, commented: "We are pleased that Irgovel reached this agreement with CAAL.  When the project is complete, Irgovel will receive a steady supply of high quality, high oil content stabilized rice bran produced using RBT's proprietary extrusion equipment.  This will help to improve oil extraction efficiency at Irgovel and CAAL will be able to sell all of its bran to Irgovel, improving margins and financial performance for its co-op members.  We see this arrangement as a win-win scenario for all parties involved and look forward to a long lasting relationship with CAAL."

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.

Forward-Looking Statements

This release contains forward-looking statements, including, but not limited to, statements about RiceBran Technologies' expectations regarding financial performance, production capacity, production levels, product demand, supply of raw materials, completion of projects at Irgovel and CAAL and future growth. 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
[email protected]

SOURCE RiceBran Technologies

Related Links

http://www.ricebrantech.com

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