PHOENIX, April 25 /PRNewswire-FirstCall/ -- NutraCea (OTC Bulletin Board: NTRZ), a world leader in stabilized rice bran (SRB), nutrient research and technology, today announced that it has entered into definitive agreements to sell securities to selected institutional investors for aggregate gross proceeds of $20,000,000. The offering is made pursuant to the Form S-3 shelf registration statement that was filed by NutraCea with the Securities and Exchange Commission (the "SEC") and declared effective by the SEC on April 8, 2008. The offering is expected to close on or about April 30, 2008, subject to the satisfaction of customary closing conditions. NutraCea intends to use the net proceeds from the offering for general corporate purposes, for working capital and operational purposes and future acquisitions and strategic investment opportunities.
The securities in the offering include up to 22,222,223 shares of NutraCea common stock and warrants to purchase up to 6,666,666 shares of NutraCea common stock, which securities are being offered in "units" at a price of $.90 per unit. Each unit consists of one share of NutraCea common stock and a 5 year warrant to purchase 0.3 of a share of NutraCea common stock at an exercise price of $1.20 per share for each share of common stock that the investor purchases in the offering.
Rodman & Renshaw, LLC, a wholly owned subsidiary of Rodman & Renshaw Capital Group, Inc. (Nasdaq: RODM), acted as the exclusive placement agent for the offering.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. Any offer will be made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. Copies of the prospectus supplement together with the accompanying prospectus can be obtained at the Securities and Exchange Commission's website at http://www.sec.gov or from Rodman & Renshaw, LLC, 1270 Avenue of the Americas, 16th Floor, New York, NY, 10020.
NutraCea is a leader in stabilized rice bran nutrient research and dietary supplement development. Through its wholly owned subsidiary RiceX, the company manufactures and distributes products and food ingredients made from rice bran through its proprietary technology and processes. The company has developed intellectual properties to create a range of proprietary product formulations, delivery systems and whole food nutrition products. NutraCea's proprietary technology enables the creation of food and nutrition products from rice bran, normally a wasted by-product of standard rice processing. In addition to its whole foods products, NutraCea develops families of health-promoting "nutraceuticals," including natural arthritis relief and cholesterol-lowering products. More information can be found in the company's filings with the SEC, and at the company's Web site http://www.NutraCea.com.
Safe Harbor Statement
This release contains forward-looking statements, including statements
regarding our production capability, revenue growth, profitability, future
acquisitions and strategic opportunities. Actual results may differ from
those projected due to a number of risks and uncertainties, including, but
not limited to the matters specified in the Company's filings with the
Securities and Exchange Commission. These statements are made based upon
current expectations that are subject to risk and uncertainty. The Company
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 the Company's filings
with the Securities and Exchange Commission, including the company's most
recent periodic report.
Senior V.P. NutraCea
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