NutraCea raises $50 million; funds to be used for expansion
February 16, 2007
by Eric Schroeder
EL DORADO HILLS, CALIF. — NutraCea, a leader in research and the production and marketing of stabilized rice bran and its derivatives, entered definitive agreements with institutional and accredited investors on a private placement of 20 million shares of common stock at a purchase price of $2.50 per share, for gross proceeds of $50 million, before payment of placement agent commissions and offering expenses. In addition, investors will receive warrants to purchase 10 million shares of common stock at an exercise price of $3.25 per share expiring in five years.
Brad Edson, president and chief executive officer of NutraCea, said the financing will strengthen the company’s ability to expand its proprietary stabilization plants. The additional money also will allow the company to bring its technology into regions of the world where large scale rice production can provide the raw materials to manufacture NutraCea’s core products, he said.
"This opportunity for rapid growth positions us to make stabilized rice bran and rice bran derivatives accessible to global communities as a food ingredient, an economical solution for the reduction of malnutrition and for nutraceutical products that address a variety of health issues," Mr. Edson said.