SACRAMENTO, CALIF. — Continental Grain Co., one of the oldest food and agribusiness companies in the world, has entered an agreement to acquire 2.7 million shares of RiceBran Technologies common stock for $2.9 million. The transaction represents about 16% of RiceBran’s issued and outstanding common stock.
“We are pleased that Continental Grain Co. is making a significant investment in our company’s future,” said Robert Smith, Ph.D., president and chief executive officer of RiceBran. “Continental Grain Co. is one of the oldest food and agribusiness companies in the world with a long history of pursuing strategic investment opportunities in food and agribusiness.”
Established in 1813 as a grain trading company based in what is known now as Arlon, Belgium, Continental Grain grew to become one of the largest privately held companies in the world.
|Ari Gendason, senior vice-president of corporate investments at Continental Grain and a member of RiceBran’s board of directors|
“The RBT team has made substantial progress in the past year toward its strategic objectives, from focusing on its rice bran business to significantly strengthening its financial condition and lowering operating costs,” said Ari Gendason, senior vice-president of corporate investments at Continental Grain and a member of RiceBran’s board of directors. “RBT’s stabilized rice bran and proprietary ingredient products provide better-for-you ingredients that consumers are increasingly demanding from food companies, and Continental Grain Co. has a long history of seeking out expansion opportunities in this space, making this a good strategic fit for both companies. We look forward to RBT’s continued progress.”
RiceBran Technologies is a food, animal nutrition and specialty ingredient company focused on the procurement, bio-refining and marketing of numerous products derived from rice bran. The company has proprietary and patented intellectual property that allows it to convert rice bran into a number of food, animal nutrition and specialty ingredient products. The company’s markets include food and animal nutrition manufacturers and retailers, as well as specialty food, functional food and nutritional supplement manufacturers and retailers.
In the second quarter ended June 30 RiceBran sustained a loss of $1.29 million and had sales of $3.1 million, which compared with a loss of $1.34 million and sales of $3.2 million in the same period a year ago.