USA – RiceBran Technologies, global leader in processed rice bran products has announced that it has completed a private placement valued at US$12 million led by strategic and institutional investors including Continental Grain Company, DG Capital and Dillon Hill Capital.

It has made a private placement of 3,046,668 shares of common stock and a pre-funded warrant exercisable into 1,003,344 shares of common stock.

According to the company, the proceeds will be used in strategic initiatives, including a significant expansion of the production capacity and construction of a world-class bran room.

It will also enable the company produce new, innovative, and technology-driven SRB products at its Golden Ridge Rice Mills facility in Wynne, AK, and a potential tuck-in acquisition.    

With the placement, RiceBran plans to support growth of its rice bran ingredient business in both the human and animal nutrition markets.

“The completion of this financing is an important inflection point in positioning our Company for future growth in order to build significant shareholder value,” said Brent R. Rystrom, chief executive officer of RiceBran.

The financing also positions us to pursue a strategic tuck-in acquisition opportunity that we are currently evaluating.

We believe our products are perfectly positioned to meet growing consumer demand for foods that are healthy, natural, and non-GMO, and we look forward to using this capital to deliver positive returns for our shareholders in 2019 and beyond.”

He said the financing will be critical inexecution of the company growth strategy which involves expanding its rice milling capacity.

Speaking on the investment, Ari Gendason, chief investment officer at Continental Grain said: “We are pleased with RiceBran Technologies’ progress and excited for the opportunity to invest an additional US$5 million to help finance strategic initiatives.

In addition, we split our investment between common stock and a pre-funded warrant which will become exercisable upon shareholder approval.”

Last year, RiceBran completed the acquisition of the assets and operations of Golden Ridge Rice Mills for US$7.8 million.

The transaction included Golden Ridge’s milling and rice bran stabilization facility in Wynne, Arkansas, U.S.