SCOTTSDALE, Arizona, June 1, 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, today announced that the Company has entered into a 3 1/2 year exclusive supply agreement (the "Agreement") with Organic by Nature, Inc. ("Organic by Nature"), a Long Beach, California based company specializing in organic and natural superfood supplements. Organic by Nature is unrelated to CRF Frozen Foods, LLC of Pasco, Washington, which sells products under the label "organic by nature".
Under the terms of the Agreement, Organic by Nature will purchase RBT's Organic RiSolubles® and have certain rights of first production and exclusivity. In order to maintain exclusivity, Organic by Nature must purchase minimum quantities of Organic RiSolubles® totaling in excess of $4 million over the initial term of the Agreement. Organic by Nature will maintain exclusivity so long as it meets the minimum purchase requirements and other terms of the Agreement. In addition, Organic by Nature has made a "best efforts" commitment to develop applications and uses for RBT's Organic RiFiber.
RBT's Organic RiSolubles® and Organic RiFiber are being produced from organic jasmine rice bran produced by the Bangkok, Thailand based Narula Group of Companies ("Narula Group"), one of the world's largest growers of organic jasmine rice. Sales derived from the Agreement with Organic by Nature are expected to trigger the acquisition of RBT common stock by the Narula Group at a price of $2.80 in line with the arrangement announced and filed with the SEC in February 2016. Per the terms of that arrangement, the Narula Group has the right to earn up to 950,000 shares of RBT's common stock, previously issued and deposited in escrow, at a price of $2.80 per share based on net margins derived from RBT's sale of organic rice bran products purchased from the Narula Group.
W. John Short, CEO and President of RBT, commented: "We are excited to have reached this agreement with Organic by Nature to exclusively supply our new Organic RiSolubles® for inclusion in one of their flagship products. The addition of the organic rice bran products and derivatives obtained through the arrangement with the Narula Group allows RBT to complete our product positioning in the rapidly growing natural, organic and functional food market in the US by adding organic products. We look forward to working with Organic by Nature to build sales of both our Organic Risolubles and Organic RiFiber as we continue to position our company to take advantage of rapidly developing consumer trends away from medicines and dietary supplements and toward healthy whole food nutrition through functional foods and ingredients."
About RiceBran Technologies
RiceBran Technologies is a packaged functional food, functional food ingredient, 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, functional food and animal nutrition products. Our target markets are human food ingredient, functional food 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 sales of organic rice bran products, RBT's ability to take advantage of market trends, the growth of the organic and functional food market and the acquisition of stock by the Narula Group. 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 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