RiceBran secures investment from Funicular Funds

RiceBran Technologies announced a series of transactions to provide working capital, refinance certain of its prior debt and exchange certain warrants for shares of common stock, no par value, and new warrants in the Company, creating a more stable and sustainable foundation as the Board of Directors continues to explore strategic initiatives and alternatives to maximize value of its assets and public platform. Key elements of the transactions include: A fund managed by Cable Car Capital LLC, Funicular Funds has purchased $400,000 in shares of Common Stock at a per share price of $0.18, representing approximately 2.2 million shares. Additionally, Funicular provided an additional $3.6 million in funding through a newly created senior secured promissory note with a five-year maturity, 10% original issue discount and 13.5% coupon. Funicular received warrants to purchase approximately 5.0 million shares of Common Stock at an exercise price of $0.18. Assuming full exercise of the Funicular Warrants for cash, Funicular would own approximately 49.8% of the outstanding shares of Common Stock. Funicular’s acquisition of more than 4.95% of Common Stock has been approved by the Company under its Tax Benefits Preservation Plan, and the transaction has been structured to maintain the Company’s tax attributes. RiceBran and its subsidiaries Golden Ridge Rice Mills and MGI Grain repaid their outstanding term loan of approximately $1.5 million with Continental Republic Capital, LLC d/b/a Republic Business Credit. RiceBran, Golden Ridge and MGI Grain paid the promissory note in favor of Republic, and Republic terminated the promissory note and the related mortgage on certain real property of RiceBran and released its lien on such real property. RiceBran, Golden Ridge, MGI Grain and Republic amended their existing Agreement for Purchase and Sale to, among other things, modify the provisions granting a security interest in the accounts receivable and other assets of RiceBran, Golden Ridge and MGI Grain to Republic in light of the secured loan from Funicular and the corresponding intercreditor arrangement between Republic and Funicular. Warrants to purchase approximately 2.2 million shares of Common Stock were exchanged for 628,810 shares of Common Stock and new warrants to purchase 1.2 million shares of Common Stock. As a result, RiceBran has approximately 9.5 million shares of Common Stock outstanding, $4 million in five-year debt from Funicular and approximately 16.4 million shares of Common Stock outstanding on a fully diluted basis.