RICEBRAN TECHNOLOGIES (NASDAQ:RIBT) Files An 8-K Entry into a Material Definitive Agreement

RICEBRAN TECHNOLOGIES (NASDAQ:RIBT) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement

On October 31, 2019, RiceBran Technologies (the “Company”) entered into an Agreement for Purchase and Sale (the “Factoring Agreement ”) dated as of October 28, 2019, with Republic Business Credit, LLC (“Republic”) for a factoring facility under which Republic will lend the Company up to seven million dollars ($7,000,000) (the “Facility Limit”). The factoring facility provides for Republic to advance to the Company up to 90% of the sum of all undisputed receivables purchased by Republic with certain limitations. Upon receipt of any advance, the Company will have sold and assigned all of its rights in such receivables and all proceeds thereof. The factoring facility is secured by all of the Company’s existing and later acquired personal property assets.
The Company will pay Republic a facility fee of 0.5% of the Facility Limit upon execution of the Factoring Agreement and is required to pay financing fees on the any advance equal to the prime rate plus 0.5%, but in no event shall such fees be less than 5.5%. In addition, the Company will pay a monthly service fee calculated based on the average net funds advanced monthly as provided in the Factoring Agreement. Republic has the right to demand repayment of any purchased receivables at any time and for any reason. The factoring facility is for an initial term of two (2) years and will renew on a year to year basis thereafter, unless terminated in accordance with the Factoring Agreement.
The foregoing description of the terms of the Factoring Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Factoring Agreement, a copy of which is filed hereto as Exhibit 10.1, and is incorporated herein by reference.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information disclosed in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.03.
Item 9.01 Financial Statements and Exhibits

RiceBran Technologies Exhibit
EX-10.1 2 ex10_1.htm EXHIBIT 10.1 Exhibit 10.1 Agreement for Purchase and Sale   Between: Republic Business Credit,…
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About RICEBRAN TECHNOLOGIES (NASDAQ:RIBT)

RiceBran Technologies is a human food ingredient, functional food ingredient, packaged functional food and animal nutrition company. The Company is focused on processing and marketing of nutrient dense products derived from raw rice, an underutilized by-product of the rice milling industry. The Company has two operating segments. The USA segment manufactures and distributes stabilized rice bran (SRB) (for human food ingredient and animal nutrition customers) and derivative products. The Brazil segment extracts crude rice bran oil (RBO) and defatted rice bran (DRB) from rice bran, which are then further processed into fully refined rice bran oil for sale internationally and in Brazil, compounded animal nutrition products for horses, cows, swine, sheep and poultry and a range of human food and animal nutrition products. The Brazil segment consists of the operations of Nutra S.A. LLC subsidiary, whose only operating subsidiary is Industria Riograndens De Oleos Vegetais Ltda. (Irgovel).

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