SACRAMENTO, California,
April 26, 2017 /PRNewswire/ --
RiceBran Technologies (NASDAQ:
RIBT, NASDAQ: RIBTW) ("RBT" or "Company"), a global leader in the
production and marketing of value-added products derived from rice
bran, today provided an update regarding the status of its
compliance with the Listing Rules of the Nasdaq Stock Market
("Nasdaq").
As previously disclosed, on August 18,
2016, Nasdaq Staff notified the Company that it did not
comply with the minimum $2.5 million
stockholders' equity requirement for continued listing set forth in
Listing Rule 5550(b)(1). The Company requested and was granted an
extension to comply with this listing requirement by February 14, 2017. Upon receiving notification
from Nasdaq that it had failed to regain compliance with this
listing requirement, the Company requested and was granted a
hearing which was held on March 30,
2017. At that hearing the Company provided a plan of
compliance that included various components designed to increase
stockholders' equity. Then the Company asked that the Panel grant
it conditional listing through at least May
15, 2017, by which time it would demonstrate compliance with
the minimum $2.5 million
stockholders' equity requirement.
On April 7, 2017, the Company
announced that it reached an agreement on March 31, 2017 with Alothon Group, LLC
("Alothon"), its minority co-investor in Nutra SA, that terminated
Alothon's roll-up rights, a process that would have allowed Alothon
to swap its equity position in Nutra SA for an equivalent value of
RBT common stock. The elimination of those rollup rights will allow
the Company to reclassify approximately $9.6
million of derivative warrant liability to shareholders'
equity effective March 31, 2017. As a
result, the Company believes it will report stockholders' equity
for the period ended March 31, 2017
well above the $2.5 million minimum
requirement when it reports its first quarter results on
May 11, 2017.
On April 24, 2017, the Company
received a decision letter from Nasdaq stating that the Hearings
Panel has granted the Company's request for continued listing
provided that, on or before May 15,
2017, the Company shall have announced in a public filing
(via Form 8-K or Form 10-Q) that it has equity of over $2.5 million. The Company must also at that time
provide the Hearings Panel with updated projections showing
stockholders' equity through May
2018.
Separately, and also as previously disclosed, RBT must regain
compliance with Nasdaq's $1 minimum
bid price requirement prior to the expiration of the automatic
grace period provided for by Nasdaq rules, which currently affords
the Company until September 6,
2017. This can be resolved by demonstrating the closing bid
price of the Company's common shares of at least $1 per share for a minimum of ten consecutive
trading days. If this appears unlikely as September 6, 2017 approaches, the Company is
committed to taking actions that would enable it to regain
compliance, including, if necessary, completing a reverse split of
its common stock to increase its share price above the $1 minimum bid price.
About RiceBran Technologies
RiceBran Technologies is a food and animal feed ingredient
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 food and feed
ingredient products. Our global target markets are food and feed
manufacturers and retailers, as well as specialty food, functional
food and nutritional supplement manufacturers and retailers. 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-portion of
additional disclosure
This release contains forward-looking statements, including, but
not limited to, statements about RiceBran Technologies'
expectations regarding the reclassification of derivative warrant
liability to shareholders' equity, future financial results,
shareholder's equity as of March 31,
2017, satisfaction of Nasdaq's shareholders' equity
requirements and RBT's potential completion of a reverse stock
split. These statements are made based upon current expectations
that are subject to known and unknown risks and uncertainties,
including the risks that (i) RBT may have further adjustments to
the dollar amount of the warrant liability reclassification, (ii)
RBT's results of operations for the quarter ended March 31, 2017 and the classification of RBT's
outstanding preferred stock as of March 31,
2017 will materially impact its shareholders' equity, (iii)
Nasdaq determines that RBT's shareholders' equity as March 31, 2017 is not adequate in light of RBT's
historic financial performance and (iv) if RBT determines to
complete a reverse stock split in the future, RBT's shareholders
may not provide the requisite approval. 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
+(732)-410-9810
fred@ascendantpartnersllc.com
SOURCE RiceBran Technologies