Judgment paves the way to begin the process of releasing monies held in escrow
SCOTTSDALE, Ariz., April 1, 2015 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, announced today that it has received an arbitral award of R$ 3.6 million from a Brazilian arbitration panel related to the Company’s 2008 acquisition of Irgovel.
An escrow account of approximately US$ 1.9 million was established in a San Francisco bank in 2008 related to RBT’s acquisition of Irgovel. Pursuant to the binding arbitration clause in the final purchase agreement, any parties involved in disputes related to the purchase agreed to settle those disputes through binding arbitration. The arbitration panel has ruled in favor of the Company and has initially awarded R$3.6 million to RBT. This award paves the way for RBT to begin the process of releasing monies from that escrow to be used to fund operations at Irgovel.
RBT is seeking an additional amount of approximately R$ 400,000 for arbitration costs and expenses along with additional amounts for interest. RBT has provided the necessary documentation to the arbitration panel to recover those additional amounts.
W. John Short, CEO and President, commented: “We are pleased to have finally obtained this award of the arbitration panel. While we still have work to do to achieve the release of escrow funds, this judgment goes a long way towards accomplishing that goal. We look forward to putting that money to work to help us grow our Irgovel operations for the benefit of our company and its stockholders.”
About RiceBran Technologies
RiceBran Technologies is a 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 and animal nutrition products. Our target markets are human food ingredients 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 https://www.ricebrantech.com.
This release contains forward-looking statements, including, but not limited to, statements about RiceBran Technologies’ expectations regarding recovery of funds from an escrow account related to the 2008 purchase of Irgovel. 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 this press release and in RiceBran Technologies’ filings with the Securities and Exchange Commission, including its most recent periodic reports.
Investor Relations Contact:
Ascendant Partners, LLC