TOMBALL, TX / ACCESSWIRE / October 10, 2022 / RiceBran Technologies (NASDAQ:RIBT) (the "Company"), a global leader in the development and manufacture of nutritional and functional ingredients derived from rice and other small and ancient grains for human food, nutraceutical, pet care and equine feed applications, announced it has formed an agreement with Gander Foods, LLC, a food industry consulting firm founded by rice industry veteran Steven Weinreb, under which Gander Foods will engage JT Ferguson, owner and operator of Cormier Rice, to provide management services to our Golden Ridge Rice Mills facility ("Golden Ridge"), enabling RiceBran to expand its focus on value-added ingredient opportunities.
Highlights of the Agreement:
- Deal places sourcing, selling, and operations of Golden Ridge in hands of local expert.
- RiceBran expects rapid improvement in Golden Ridge's adjusted EBITDA contribution.
- Gander Foods expected to purchase RiceBran equity, aligning it with RiceBran's shareholders.
As part of the agreement, Mr. Ferguson, will oversee the day-to-day operations, for Golden Ridge. Mr. Ferguson is a third-generation rice miller of significant stature in the regional rice market. He brings an extensive network of local farmers for sourcing grain for the mill, with a proven track record of operating Cormier Rice.
"We have significantly improved operations at Golden Ridge over the past 18 months, driving an expected 30-40% increase in revenue in 2022 vs. 2021, following similar gains in 2021 vs. 2020," commented Peter Bradley, Executive Chairman of RiceBran. "This progress was the result of higher volumes, increased efficiencies, and higher milling yields. While these improvements have significantly reduced adjusted EBITDA losses for the mill, overall results have been constrained by our processes for sourcing and selling rice."
Mr. Bradley continued, "We expect rapid improvement in profitability at Golden Ridge from Mr. Ferguson's ability to implement the successful Cormier business model for grain sourcing and finished rice sales, and under Mr. Ferguson's guidance, Golden Ridge should be able to achieve further operating improvements. With these improvements, we believe there is an opportunity to expand the mill's production schedule from its current 5-days per week to 6 or 7 days per week, further increasing Golden Ridge's revenue and adjusted EBITDA."
The agreement is structured to align Gander Foods with RiceBran's shareholders. In exchange for Gander Foods' services, RiceBran will pay Gander Foods an initial one-time fee, and Gander Foods has agreed to use this payment to purchase unvested RiceBran common stock, which will vest in equal installments over three years, subject to Gander Foods' continuous service to Golden Ridge. Subsequently, Gander Foods will receive quarterly performance payments based on a percentage of Golden Ridge's positive adjusted EBITDA contribution and is expected to use these payments to purchase additional RiceBran common stock.
About Gander Foods, LLC
Gander Foods is a management consulting firm, founded by food industry veteran Steven Weinreb. Mr. Weinreb previously served as President and Chief Executive Officer of American Rice Inc., one of the largest rice milling and marketing companies in the U.S, and is currently the President of Concord Foods, a rice and specialty food marketing company. Gander Foods has engaged the services of JT Ferguson, the owner and operator of Cormier Rice, a rice milling operation headquartered in DeWitt, Arkansas. JT brings to Golden Ridge the local market relations and infrastructure to more effectively source for Golden Ridge, which could drive a meaningful improvement in operating margins.
About RiceBran Technologies
RiceBran Technologies is a specialty ingredient company focused on the development, production, and marketing of products derived from traditional and ancient small grains. Notably, RiceBran is a leader in the production and marketing of stabilized rice bran (SRB), and high value-added products derived from SRB. RiceBran creates and produces products utilizing proprietary processes to deliver improved nutrition, ease of use, and extended shelf-life, while addressing consumer demand for all natural, non-GMO and organic products. The target markets include food and animal nutrition manufacturers and retailers, as well as specialty food, functional food and nutritional supplement manufacturers. More information can be found in the Company's filings with the SEC and by visiting our website at http://www.ricebrantech.com.
Forward-Looking Statements
This release contains forward-looking statements, including, but not limited to, statements about RiceBran's expectations regarding its future financial results, sales growth, Adjusted EBITDA (non-GAAP) improvements, and SG&A. These statements are made based upon current expectations that are subject to known and unknown risks and uncertainties, including the risks that operations are disrupted by the COVID-19 pandemic and timing of profitable operations. 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 RiceBran Technologies' filings with the Securities and Exchange Commission, including its most recent periodic reports.
Investor Contact
Rob Fink
FNK IR
ribt@fnkir.com
646.809.4048
SOURCE: RiceBran Technologies
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