PHOENIX, Aug. 6 /PRNewswire-FirstCall/ -- NutraCea (OTC: NTRZ), a world leader in stabilized rice bran nutrient research and technology, today announced the Company has entered into a forbearance agreement with Wells Fargo Bank, N. A. ("Wells Fargo") relating to the previously disclosed "Events of Default" which accelerated outstanding amounts due under the Credit and Security Agreement dated December 18, 2008.
Pursuant to the terms of the Forbearance Agreement dated July 31, 2009, Wells Fargo agreed to forbear from exercising its rights and remedies with respect to existing defaults and advance the Company $335,000 under its line of credit. The Forbearance Agreement expires on January 31, 2010.
NutraCea President John Short commented, "On behalf of our management team, I want to thank the professionals at Wells Fargo for the expeditious manner in which they negotiated and executed the Forbearance Agreement. We look forward to working with Wells Fargo through the forbearance period and beyond."
Under the leadership of its newly expanded executive team, NutraCea is moving quickly to refocus the Company's management and financial resources on its core businesses, which include the application of NutraCea's proprietary technologies to the production of stabilized rice bran ("SRB"), rice bran oil ("RBO"), cereal products for infants and adults and high value downstream derivatives of SRB and RBO.
Recent Transactions Consistent with Plans to Exit Non-core Investments
"In order to provide greater concentration of both management and financial resources on our core competencies, we plan to exit investments that do not directly support our primary businesses. We will reinvest funds generated by monetizing non-core assets first to stabilize NutraCea's financial position and then to further grow our core businesses," stated Short.
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