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 signed a conditional commitment letter with Full Circle Capital (“Full Circle Capital”) for an $8 million three year debt facility to provide working capital and term loans to facilitate future growth. The financing will take the form of a $3.5 million senior secured revolving working capital facility (“Revolver”), a $2.5 million term loan (“Term Loan A”) and up to $2 million of additional term loans (“Term Loan B”).
Dale Belt, Chief Financial Officer, commented: “We are pleased to have entered into this commitment letter from Full Circle Capital. This financing will replace the high interest $8 million revolving credit facility we paid off in mid-2014. We expect to close this transaction in the coming weeks and use the resulting funding to support business growth throughout this year and into 2016. While final documents have not yet been completed, we expect a double digit reduction in effective interest compared to the previous facility.”
The financing is subject to usual terms and conditions including but not limited to the negotiation, execution and delivery of definitive documents acceptable to both parties, completion of due diligence including the determination by Full Circle Capital of no adverse material changes prior to closing, and satisfaction of closing conditions set forth in the commitment letter and definitive documents. Both parties are working towards a closing early in the second quarter of 2015.
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.
About Full Circle Capital Corporation
Full Circle Capital Corporation (www.fccapital.com) is a closed-end investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. Full Circle lends to and invests in senior secured loans and, to a lesser extent, mezzanine loans and equity securities issued by lower middle-market companies that operate in a diverse range of industries. Full Circle’s investment objective is to generate both current income and capital appreciation through debt and equity investments. For additional information visit the company’s website www.fccapital.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