RiceBran sells stabilized rice bran business for $3.5M

RiceBran Technologies sold its stabilized rice bran business for total consideration of approximately $3.5 million, consisting of $1.8 million in cash and the assumption of $1.7 million of the Company’s real estate lease obligations on two operating facilities, to Stabil Nutrition, LLC. The transaction is part of the previously disclosed strategic review by the Board of Directors who anticipate that, based upon first quarter 2023 results, this sale would decrease RiceBran’s projected annual net loss by approximately $2.2 million, including the reduction in selling, general and administrative expenses of $1.3 million, while not jeopardizing the estimated $54.4 million in federal and $46.0 million in state net operating loss carryforwards that the Company had amassed as of December 31, 2022. The assets sold include two Company-owned manufacturing facilities in Dillon, Montana and Mermentau, Louisiana, as well as two leased facilities in West Sacramento, California and Lake Charles, Louisiana. Additional terms of the transaction will be disclosed in a Form 8-K to be filed with the Securities and Exchange Commission.