Total arbitration award reaches R$4.8m as Company works to release US$1.9m held in escrow
SCOTTSDALE, Ariz., May 20, 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 additional arbitral award of R$1.2 million from a Brazilian arbitration panel related to the Company’s 2008 acquisition of Irgovel. The additional R$1.2 million brings the total amount of the arbitral award to R$4.8 million.
As the Company previously disclosed, 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 ruled in favor of RBT and initially awarded R$3.6 million to the Company in March of 2015. RBT filed a request to the arbitration panel to clarify and correct the calculation of the original award. Pursuant to that request, the arbitration panel awarded an additional R$1.2 to the Company. RBT is now working with legal counsel to release the escrow funds for use as working capital.
W. John Short, CEO and President, commented: “We are pleased to have obtained this additional award from the arbitration panel related to our 2008 purchase of Irgovel. With this additional award in hand, we are working to release the US$1.9 million in escrow funds. We look forward to putting that money to work to help us grow our 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