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Familiar faces
Jeff Lynn, leader of ELO is the one I did not know besides the drummer.
Pilgrims Pride emerges from BK, SHAREHOLDERS NOT SCREWED
Stock up 56% from the low
Pilgrims Pride emerged from BK today and is paying off debts with cash from the JBS purchase. And, share holders WILL GET NEW STOCK that will trade Tuesday. I have not figured out how much stock they get in value, it was announced after the close. It will trade as PPC Tuesday.
However, the stock closed at .15 last December and today it closed at 8.40. That is up 56 fold. If NTRZ does that, we will be at $2.80 to compare. But, I don't know how Pilgrims Pride will act tomorrow since I don't know the ratio of new stock to old and the PR came out after the close.
I call this GREAT NEWS since Pilgrims looks to be in worse shape than Z is.
http://finance.yahoo.com/news/Pilgrims-Pride-exits-apf-2928166957.html?x=0&sec=topStories&pos=main&asset=&ccode=
http://stockcharts.com/h-sc/ui?s=PGPDQ&p=D&yr=2&mn=0&dy=0&id=p15636110593
At times I feel Short is preparing NTRZ for sale by cleaning out the barn. I hope not since I feel Z could still be the next super stock.
GL ALL
One good technical factor>>>
The 15 day moving average has been resistance since the end of October. Also, was the bottom of .05 tested? Maybe this breakout of the 15 day MA will lead to a year end/January rally?
All the breakouts in the past 31 months have failed, however.
http://stockcharts.com/h-sc/ui?s=NTRZ&p=D&yr=0&mn=6&dy=0&id=p96800548725
GL ALL
Merry Xmas again
Great guitar and a female vocal>>>
Nice passages out of Henk's article
Many people are against soy and many against genetically altered food, Hen says:
"in 2010 approximately 95% of all soy feed for animals are based on genetically manipulated soy seed specialties."
Another nice excerpt>
"Because Rice Bran retains moisture, it improves the shelf life of meat products in addition to enhancing the nutritional profile"
http://www.nutracea.com/downloads/Articles/BoardingTheRiceBranBandwagon.pdf
GL ALL
bbb I admit to liking Metallica
Only two songs though, lol. And neither is their heaviest.
bbb-each to his own...
...but your Napalm Death music sounds like a funeral, lol. Keep posting it anyway, who knows, I may come to like it, but probably not in this lifetime, lol. I do love Rory!!!!!
Beds Are Burning
New supplements with SRB
More companies are using SRB. Here is a list rosevilleinvestor found.
http://www.bodybuilding.com/store/nc/dhea.html
http://www.bodybuilding.com/store/san/infusion.html
http://www.bodybuilding.com/store/ham/tissue.html
http://www.bodybuilding.com/store/ham/psa.html
http://www.bodybuilding.com/store/ham/rem.html
http://www.bodybuilding.com/store/ham/super.html
http://www.bodybuilding.com/store/nc/max.html
http://www.bodybuilding.com/store/ham/anti.html
http://www.bodybuilding.com/store/ham/race.html
http://www.bodybuilding.com/store/ham/phyto.html
Looks like the stock filled the gap today.
New Henk Hoogankamp Article
This could be a part of his upcoming book on rice bran?
http://www.nutracea.com/downloads/Articles/BoardingTheRiceBranBandwagon.pdf
http://www.nutracea.com/RiceBranArticles
Pharma rumors given credence
The following rumor from Yahoo last week from a guy named nicklaus999>>
I was told by people who were at the shareholder meeting themselves that there were peopel there from the Pharma side of the equation. They were told the upside here is beyond tremendous. From what I have learned some of the trials have been done, but BE decided to lavishly furnish a office building instead of paying for the trials. This is money that is owed so we can get the results. I don't know what the exact amount is, but I believe it to be in the six figures. I believe getting this and further info. on this front is a priority on Short's list. I know there is ton of interest in NYC from companies and institutions alike on this front alone.
Some of this has to do with Pharma drugs coming off patent exclusivity. If these companies can tweak their receipe by adding a NTRZ ingredient that changes the formula so to speak they can extend their exclusivity before it goes to generic. This is worth billions to them. I am not a biotech guy so don't quote me on this, but I know enough and I know who is looking. If Ntrz can prove to the world that they can add value on this front it's worth a TON of money to the bottom line. There are many potential applications and avenues to explore within this realm so it should be interesting. I know it is something
Now, NTRZ has names a new Vice President of Nutraceuticals and Food Ingredients-Domestic. Sounds like they may add and international VP in this area.
http://www.nutracea.com/ContactNutraCea
Thanks buyit
I like that Dr. Green Thumb. lol. And I like your music over all.
Here is a song I play when I get stopped out of a stock>>>
Baba O'Riley
Wizards of Winter
You will remember this tune from Coke ads. Song done by The Trans-Siberian Orchestra!
Sail Away
David Gray
Great new patriotic Xmas song.
Crissie Hynde puts a great new beat on a Xmas song. And it is a sad song if you watch the video closely, especially if one has lost a loved one in the service. VERY MOVING
Dedicated to losing stocks
Female version or Rory Gallagher.
Kelly Richey plays her guitar with both of her hands tied behind her back(so to speak) midway in the song.
Merry Christmas
This video gets wild at about the 42 second mark--enjoy.
Merry Christmas
This video gets wild at about the 42 second mark--enjoy.
Thought on 8-K
Rosco, it may have been passed to help get new BOD members. The candidates may be scared like heII of Z right now. I really don't have enough information to pass any judgment on this.
Phoenix office lease exit
This email to a poster named harpisgood yesterday.
Effective Friday, 12/4/09 – We Are Moving!
New address: 6720 N. Scottsdale Road, Ste 390 , Scottsdale , AZ 85253
Phone: 602-522-3000 Fax: 602-522-3001
All mail will be forwarded to the new address on 12/4/09. This also includes all FedEx and UPS shipments.
Our transition period is from 12/4 – 12/7. Any incoming messages will be received. Do not be alarmed if a rejected email message appears. This may occur even though your message was received.
This was confirmed by another person who posted about the auction to furnish office equipment and furniture on December 9th.
http://www.auctionaz.com/120909.htm
Getting out of the lease of $83,000 per month plus high utilities and into a smaller office at 15% the annual cost will save NTRZ about $1,000,000 per year.
There is no official PR out yet on this as of this morning.
"Clean Green Labeling" by Henk
In the recent Henk article he uses the phrase. "Clean Green labeling". I was puzzled a bit by that. Exactly how does NTRZ's systems help the environment. Sure, it helps by using food better and less food is needed to be grown, thus less fuel is needed to produce the food. But, Henk knows even more that that thought. Reducing meat and dairy consumption means less global greenhouse emissions from livestock. The pasted article goes on to say that food production accounts for 10-12% of all green house gas emissions, and 80% of the 10-12-% is from livestock or about 8 to 9 % of all greenhouse gasses are from livestock smelling up the countryside.
So, using RiBran as meat filler reduces the meat consumption and thus less livestock. In China, as much as 50% meat filer is used in some canned meats. 3% is quit common in USA Chicken nuggets and not needed to be on the label at that level.
Anyway, here is the article>>>
http://www.meatprocess.com/Industry-markets/Reduce-meat-and-dairy-production-to-cut-emissions-says-study
http://www.nutracea.com/HenkHoogenkampJoinsNutraCeaasExecutiveAdvisor
GL ALL
IP's NTRZ is sitting on.
From deagleace at yahoo. These might develop into a pharma deal eventually.
http://www.herbalsciencegroup.com/pdf/HS011008.pdf
http://www.herbalsciencegroup.com/pdf/yahoo.pdf
xyrmd--Kody emails
Many posters at Yahoo got calls from Kody in the last 6 weeks, including me. He has said that revenues are increasing month over month. That is at least up until last month. I do think Brazil is entering it's slowest quarter, so that may end, but revenues seem rising. The problem will be expenses, but we know Short has been working on expenses. I am wondering more if chapter 11 was more to get out of the 8 year $1,000,000 per year office lease and to get LA#2 equipment back. Wells Fargo did not give us more money without knowing good things are happening or about to happen.\
Just opinion.
Look who's talking
He has been as bad as Brad so far.
India is ranked number 2 in world rice AND wheat production.
http://www.ap-foodtechnology.com/Processing/Obama-pledges-support-for-Indian-food-processing-sector
http://nue.okstate.edu/Crop_Information/World_Wheat_Production.htm
GL ALL
OT:Food Companies lead in Nutricosmetics and Nutraceuticals
Food beats cosmetics and pharma to nutra frontiers
By Guy Montague-Jones, 26-Nov-2009
Related topics: Industry, Cosmeceuticals
Food companies are showing far more interest in nutricosmetics and nutraceuticals than pharmaceutical and cosmetics companies, according to Bernstein Research.
In a report entitled “The future of food…Nutraceuticals and Nutricosmetics”, Bernstein Research claims that food is moving into the beauty and pharma space more than the other way around.
Analysts suggest this may be because developing functional foods and nutricosmetics is a far more natural extension of existing work for food companies than it is for cosmetics and pharma players.
Fear of cannibalism
Beauty food offerings from cosmetics companies are particularly limited, according to Bernstein Research. For cosmetics companies, beauty foods may not only seem a little foreign, and beyond the boundaries of their expertise, but may also be perceived as a threat to their traditional products.
“Perhaps it is seen as a direct competitor to their topically applied products, and runs the risk of cannibalisation, or even destroying some of their existing business model,” said the report.
Pharma companies are showing a more mixed attitude to the food boundary, with some companies pushing forward, while others retreat. GlaxoSmithKline recently launched Lucozade in China and stressed the importance of its consumer business, but Novartis signaled its desire to move out of the space by selling its Medical Nutrition and Gerber businesses to Nestle.
CONFERENCE
Developing your strategy to survive the EU shake-up
The NutraIngredients Health Claims 2010 Conference addresses the challenges faced by the industry and offers expert opinions and advice on how to meet the strict regulations giving your product claims the best chance of success in the coming year... Click here
Food investment
Meanwhile, in the food industry, where nutricosmetics and nutraceuticals are closer to home and more complementary to existing ranges, significant investment is being made in the new markets.
Danone and Nestle were picked out as two industry leading companies. Both have adopted health and wellness strategies and undertaken major mergers and acquisitions in the space over the last few years.
Bernstein Research also picked out Unilever as a frontrunner, saying that “perhaps it will have the ability to accelerate and overtake its peers”. The Anglo-Dutch company operates in both nutricosmetics and nutraceuticals, and has recently merged its global R&D into one common structure.
http://www.nutraingredients.com/Industry/Food-beats-cosmetics-and-pharma-to-nutra-frontiers
Rice Bran Christmas gifts.
NTRZ is still out of RiSolubles, but the rest is in stock. The oil makes a great stocking stuffer or hostess gift.
http://www.nutraceaonline.com/
Patty has a wide variety of SRB based products. I use the 24/7 Vanilla, NanaFlex, Manna, LiverCea and some of the water products(Non SRB), and more
http://www.nanacea.com/store/allprods.php?osCsid=25b72e230507233cacd9d7f49d3844e4
RicePlex--I love the strawberry and use a couple of the eye products(non SRB). (I dig the music Mike)
http://www.riceplex.com/Soluble-Rice-Bran.html
Give the gift of health and wellness for Christmas. Help other people and spread the word. Word of mouth advertising is the best advertising there is. And, the stock may go up a tad with more sales.
Bankruptcy could save $10 million
Today it was discovered that NTRZ is filing to get out of their office lease in Phoenix. They currently pay $100,000 per month and will move into another office for 15% of that. I believe they have 5 years left on their lease. So, the office saving can be $5,000,000 over 5 years. Also, NTRZ has extruders worth over $5,000,000 sitting in LA #2 they could not remove until the bankruptcy filings. Also, other debts can be bargained down. Bankruptcy will cost NTRZ about $1,000,000. If CEO Short can pull off the office lease cancellation, NTRZ will save about $11,000,000 or a net gain of $10,000,000.
Brad is an arrogant SOB to think NTRZ needed to spend over $1,200,000 per year on renting an office. That is way too much for buying an office that size. Then I understand the furnishings, which they can keep are very expensive as well.
And, the office in West Sacramento was just fine. Brad moved from Phoenix to Sacramento to take on the job, but he still lived in Phoenix. His main reason for moving was the he wanted an office close to his house. And air travel from Sacramento to Phoenix was not good. GEEZ, that man was sick, but the worst thing is that the Board of Directors approved it. If they had any honor they would all resign immediately.
December 1st is the official day.
NTRZ will get BK approval that day and maybe the Q added after that? And yes, the stock has survived several bear attacks this week. It goes down and buying sets in late in the day. I admit it is spooky owning as much as I do. Also, The week ending Dec 4th will be interesting. My belief is that NTRZ will have a conference call right before the shareholders meeting. I know personally two shareholders who are going to the shareholders meeting and I know a few more from the yahoo board who are going. I will post anything about the shareholders meeting I hear on this board.
Henks new book/old book
First the old book:
http://www.oup.com/us/catalog/general/?view=usa&ci=9780851998640
I don't know if I want to fork out $130 or more for the new book. I may wait to ses how high the stock goes first by then:
"Hoogenkamp's latest book, Technology and Marketing Value of Rice Bran and Soy Protein in Meat, Food and Beverages, is scheduled to be released in January 2010 and explores the rapid changing world dynamics and environment in relation to affordable food availability. A series of comprehensive overview articles by Hoogenkamp on the application of rice bran in the meat industry will be published in peer reviewed journals in the next few months."
http://www.prnewswire.com/news-releases/henk-hoogenkamp-accomplished-author-and-food-ingredient-scientist-joins-nutracea-as-executive-advisor-on-the-utilization-of-stabilized-rice-bran-in-food-ingredient-applications-70208457.html[color=red][/color]
Bankrupt stocks can do well--RHINO
Bankrupt stocks from RHINO's personal message board>>>
http://stockcharts.com/h-sc/ui?s=VRMLQ&p=D&yr=1&mn=0&dy=0&id=p92561254252
http://stockcharts.com/h-sc/ui?s=avrnq&p=D&yr=1&mn=0&dy=0&id=p92561254252
http://stockcharts.com/h-sc/ui?s=ssccq&p=D&yr=1&mn=0&dy=0&id=p92561254252
http://stockcharts.com/h-sc/ui?s=wahuq&p=D&yr=1&mn=0&dy=0&id=p92561254252
http://stockcharts.com/h-sc/ui?s=cemjq&p=D&yr=1&mn=0&dy=0&id=p92561254252
All of RHINO's bankrupt picks don't go up, but most do and with a couple of huge winners, he has to be way ahead of the game on BK stocks. NTRZ's fundamentals looked better than most or all of the above at the time of bankruptcy.
Henk Hoogankamp-world food expert
Henk Hoogenkamp, Accomplished Author and Food Ingredient Scientist, Joins NutraCea as Executive Advisor on the Utilization of Stabilized Rice Bran in Food Ingredient Applications
PHOENIX, Nov. 16 /PRNewswire-FirstCall/ -- NutraCea (OTC: NTRZ - News), a world leader in stabilized rice bran (SRB) nutrient research and technology, announced today that Henk Hoogenkamp, a world renowned author, researcher and developer in the food ingredient and meat processing industries, has agreed to act as an Executive Advisor to NutraCea. In particular, Hoogenkamp will conduct and provide results of research and development in various applications to further explore the utilization of stabilized rice bran (SRB) in the human food chain.
NutraCea initially began working with Hoogenkamp in November of 2007. Since then, he has conducted extensive research on uses for rice bran, including NutraCea's SRB products, in human food ingredients. Hoogenkamp's work has been instrumental in the development of SRB applications for emulsified and course ground meats. "We are pleased and honored to have Henk join our NutraCea team as an Executive Advisor. We believe that his depth of knowledge, reputation and global network in the food ingredient industry are already proving to be instrumental in opening doors for possible increased sales of our SRB products worldwide. Recent trials and studies that Henk has directed and performed demonstrate the significant long-term potential for NutraCea's SRB product range in multiple food ingredient applications in markets around the world," said W. John Short, Chief Executive Officer of NutraCea.
Hoogenkamp commented, "I'm pleased to join NutraCea as an Executive Advisor to the senior management team to help develop the global potential of rice bran as a major addition to the human food ingredient supply chain. Our growing global population needs sustainable, functional and nutritious food ingredients and rice bran offers a tremendous opportunity to convert a by-product formerly used only for animal feed to a highly nutritious human food ingredient. Stabilized rice bran provides that opportunity, along with competitive pricing and clean green labeling. It's exciting to be on the cutting edge of what can be a life-enhancing ingredient for the human food industry."
Hoogenkamp has turned his attention to rice bran in recent years, recognizing that this extremely functional and nutritious ingredient can compensate for the high cost of soy protein, as well as improve organoleptical quality. He has written numerous articles to help broaden the awareness of the use of stabilized rice bran in food, beverage and processed meat applications as both a soy replacement and as a meat emulsifier. Hoogenkamp's latest book, Technology and Marketing Value of Rice Bran and Soy Protein in Meat, Food and Beverages, is scheduled to be released in January 2010 and explores the rapid changing world dynamics and environment in relation to affordable food availability. A series of comprehensive overview articles by Hoogenkamp on the application of rice bran in the meat industry will be published in peer reviewed journals in the next few months.
Together with Kody Newland, NutraCea's Senior Vice President of Sales, Hoogenkamp will be attending Food Ingredient Europe (FIE) 2009 which will be held in Frankfurt, Germany November 17th to 19th. They will be meeting with various broadline distributors, meat ingredient focused distributors, meat processors, manufacturers, and brokers.
About Henk Hoogenkamp
Over the last 20 years, Hoogenkamp, born and raised in the Netherlands, has been a proponent of transferring protein technology systems to the world's food processing companies. He has made significant contributions to the food and meat processing industries, including his pioneering work in the development of sport nutrition protein supplements and, in particular, his groundbreaking research for milk protein and soy protein. He was a former President of the world's leading dairy company, DMV Campina (now FrieslandCampina), and also served as the Senior Director of Strategic Technology for DuPont Protein Technologies (now Solae LLC).
Call to NTRZ/email to Sales VP
I called the online store this morning and talked to Jessica. I pretended to be a big potential customer of bulk SRB. From the time they get an order and ship a full container load takes two weeks. Because of heavy demand they are now 4 weeks behind. She says they got the seasonal orders caught up, but heavy demand is keeping them behind. I asked about that and she said mills are slow in the summer and some orders fall behind, but that extra demand is well past and taken care of and many orders still streaming in. So, it sounds like BK has not cause any problems yet and Q3/4 should look quite good year over year as far as revenue in the USA goes.
Also, RiSolubles canisters should be in next week. Check the site.
Next that leads me to emailing Kody. I wonder how NTRZ can get enough stage 1 with the company busy as is and behind in orders if Hadassah is a huge success and if Phoenix gets rolling. Stage 1 is needed to make stage two. With his permission I post his immediate response>>>>>>>>>>>>>>>>>>>>>>
You are right, I can’t respond to your email specif questions. You are asking for too much detail that is not public.
I’m in Frankfurt Germany for the Food Ingredient Europe Show. To keep expenses down, Henk and I will be working out of the DP&S (Dutch Protein Services) booth. DP&S is one of our EU distributors. They handle Benelux and Germen markets for us. We will also be seeing Kreglinger, Azelis, Berentz, Kerry-Dera who all handle the EU. In addition we’ll see existing distributors United Chemical – Indonesia , Mackessen and Leysam – Malaysia , Philippines , Thailand and China , ProFood – Hungary and FoodTech – Israel . As well as prospects from Russia , Korea and a few other countries. The show is three days long and we are booked from breakfast through dinner every day. It perfect timing so I can address our court supervised restructure (CSR) face to face. It gives me the chance to explain how the CSR is perfect for NutraCea.
In addition please point out that we have reduced expenses and staff to the point that I’m not only the Sr VP of Sales but I also have direct account responsibility for every distributor and direct account out side of the USA. Due to the financial situation I have not traveled since May. This is my first trip and we need to get the most we can for the $$$$$. I’ll be spending Thanksgiving in a hotel room. Henk and I have been training over the phone when in actuality we should have been in the meat labs working with the foods techs.
<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<
So, it sounds like Short has made Z a leaner meaner company and sales are increasing. We will find out soon enough. Kody did not answer my main question about where product would come from, but I speculate that they are switching over from RiBran made from stage one to to making it out of DFB. Or maybe stage one can be taken from the oil process. If Brad's blueprint from the Rodman last November is correct, the raw bran is stabilized before anything else is made.
Also note that it is too expensive to ship DFB from Brazil to the USA, yet Kody is over in Europe selling it today. Will Z have an oil plant in Europe?
So many questions, so few answers. I sure hope Short will address many of these questions at the CC.
3 medical studies due out soon
From the 10K>>>
In 2008 RS conducted a significant amount of research. The initial thrust of this work was the development of extracts from SRB that would be effective in fighting inflammation which leads to pain. A number of extracts have been tested with two identified as having significant effect based on in vitro tests. A combination of these was created to produce a third extract that exhibits a high level of Cox 1, Cox 2 and Lox 5 inhibition. This extract was used in a pharmacokinetic study to determine the speed of assimilation into the human body. Results indicated that the active compounds were rapidly assimilated with no evidence of toxic byproducts. Our next step is to conduct a human clinical trial. A number of active compounds were identified and modeled. RS has filed Patent applications for the extract along with each of the specific active compounds.
NutraCea has an on-going immune system response study for HIV patients at the Haddassah Medical University in Israel. This study was initiated due to mounting anecdotal evidence obtained from NutraCea’s humanitarian efforts in Africa that RiSolubles seems to boost energy levels in HIV infected individuals, also helping them gain weight and regain relatively normal lifestyles. We caution that no causal relationship has yet been proven and that RiSolubles does not reverse infection by HIV. The study, with a medically reviewed, statistically validated protocol, is intended to provide a definitive answer. Assuming no unexpected delays in the study, initial results are expected toward the end of 2009 or early 2010.
Late in 2007, the Cancer Biomarkers Group in the Department of Cancer Studies and Molecular Medicine, University of Leicester in Leicester, UK published a research paper evaluating the effect of NutraCea SRB in ApcMin mice (British Journal of Cancer (2007) 96, 248-254). The mice were genetically modified to serve as models for mammary, prostate and intestinal carcinogenesis. They reported that consumption of SRB (30% in the diet) reduced the numbers of intestinal adenomas in these mice by 51% compared to the same mice on a control diet. The results suggest that SRB might be further evaluated as a chemo-preventative intervention in humans. These results led to NutraCea filing a patent application on “Methods for Treatment of Intestinal Carcinogenesis with Rice Bran” on January 4, 2008 by assignee NutraCea. A new clinical trial utilizing NutraCea Fiber Complex has been initiated at the University of Leicester to further characterize the effectiveness of this rice bran derivative as a chemo-preventative intervention against intestinal cancer in humans. The study is scheduled for completion by late 2009.
mad--sell off assets is the plan
I hear Short would be happy not owning one building. What has been discussed on another message board the most is selling part of Brazil and the other is selling Phoenix and leasing it back. One of Brad Edson's downfalls, in my opinion, was trying to own everything. it costs too much. What will make us rich is the equipment, not the buildings the extruders sit in.
Mad
I can just say that this is a mild case of bankruptcy. It is more of a cash flow problem than bankruptcy. I can give three examples of others that shareholders never lost any shares and had huge gains in two of the cases after the filing BK
VRMLQ--filed this last March 31st. A special case and still BK, but it went as low as .01, but in September it went from .03 to $18.75 today.
http://finance.yahoo.com/q/bc?s=VRMLQ.PK&t=my&l=on&z=m&q=l&c=
Health South--You can see what happen before and after it's 2003 filing>>>
http://finance.yahoo.com/q/bc?s=HLS&t=my
And CPTC--It had a great bounce from it's 2005 BK, but is lower now. But for 3 years it was ahead of the day it filed BK>>>
http://finance.yahoo.com/q/bc?s=CPTC.OB&t=my&l=on&z=m&q=l&c=
None of the trhee re-issued new stock. I am sure there are hundreds more, but there is no site that keeps track of such things. UAL and K-Mart were in terrible shape, negative net worth when there shares became worthless.
Mad--NTRZ got money from Wells Fargo.
If Wells Fargo thinks NTRZ will make it, I do too. My guess is that CEO Short has some deals coming as well as other money coming in. We should have a CC next week. And Book value is over .30. Heck, some biotech stocks losing their asses sell at 4 times book or higher.
Away we go--looks good
prnewswire
NutraCea U.S. Files for Protection Under Chapter 11 to Restructure Operations
Day-to-Day Operations Return to Normal
DIP Financing Facility for $6,750,000 Signed with Wells Fargo Bank, N.A.
Subsidiaries, including Brazilian Operation Irgovel, Not part of the bankruptcy Filing
* Press Release
* Source: NutraCea Corporation
* On 10:13 pm EST, Tuesday November 10, 2009
http://finance.yahoo.com/news/NutraCea-US-Files-for-prnews-933546056.html?x=0&.v=1
PHOENIX, Nov. 10 /PRNewswire-FirstCall/ -- NutraCea (OTC: NTRZ - News), a world leader in stabilized rice bran (SRB) nutrient research and technology, announced today that the Company has filed a voluntary petition for protection under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Arizona. None of the Company's subsidiaries, including its Brazilian rice bran oil operation, Irgovel, were included in the bankruptcy filing.
The Company plans to use the protection provided by the courts under Chapter 11 to restructure its operations, reduce overhead and sell non-core assets, in line with the previously announced strategy of focusing on its core businesses of stabilized rice bran, rice bran oil, nutraceuticals and baby cereal.
"The protection provided by the Chapter 11 process will allow NutraCea to gain immediate liquidity through the $6,750,000 Debtor-in-Possession (DIP) financing facility provided by Wells Fargo Bank, N. A. and to resume normal day-to-day operations, while giving us the opportunity to restructure, strengthen our business performance and create long-term value for our stakeholders," said W. John Short, Chief Executive Officer. Short added, "We will work hard to emerge from this process as quickly as possible with a streamlined cost structure that should allow us to operate as a healthier, more competitive and profitable company. We deeply appreciate the dedication and efforts of our employees, who have worked exceedingly hard during this challenging period. We look forward to the continued support of our customers, vendors and business partners as we reposition NutraCea for future growth and profitability."
In conjunction with its filing, the Company applied for Bankruptcy Court approval for a DIP financing facility provided by Wells Fargo Bank, N. A. The DIP facility provides lines of credit totaling $6,750,000 which, combined with cash flow from operations, will permit payment of employee wages and benefits and allow the Company to resume normal day-to-day operations, including payment of post-petition obligations to vendors and professional service providers, all in the normal course of business.
The total funds that NutraCea will be able to access under the DIP financing facility will be determined using a borrowing base formula and will be reduced by the outstanding balance owing under NutraCea's old credit facility with Wells Fargo Bank, N.A. NutraCea currently owes approximately $3,575,000 to Wells Fargo Bank, N.A. under the old credit facility. The Company's obligations under the DIP financing facility will be secured by its facilities in Phoenix, Arizona, Dillon, Montana and Mermentau, Louisiana and all of its personal property assets other than certain intellectual property assets.
In addition to seeking Bankruptcy Court approval of the DIP financing, NutraCea has filed several customary first day motions seeking authority to take actions in furtherance of its reorganization.
NutraCea has retained Forrester, Worth & Green PLLC as its bankruptcy counsel.
The Company plans to post regular updates on its website regarding the Chapter 11 process in order to keep employees, customers, vendors, professional service providers, shareholders, other stakeholders and the general public apprised of its progress as it restructures under court supervision. This information will be available starting today by visiting the Company's website and clicking the button titled Restructuring Information.
About NutraCea
NutraCea is a world leader in production and utilization of stabilized rice bran. NutraCea holds many patents for stabilized rice bran production technology and proprietary products derived from SRB. NutraCea's proprietary technology enables the creation of food and nutrition products to be unlocked from rice bran, an underutilized by-product of standard rice processing. More information can be found in the Company's filings with the SEC and by visiting our website at http://www.NutraCea.com.
Forward-Looking Statements
This release contains forward-looking statements, including without limitation, statements about the Company posting updates on its website, strengthening its business performance, providing long-term value to its shareholders, and becoming more competitive and profitable. These statements are made based upon current expectations and actual results may differ from those projected, due to various risks and uncertainties. NutraCea 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 NutraCea's filings with the Securities and Exchange Commission, including NutraCea's most recent periodic reports.
CONTACT: Marilynn Meek, +1-212-827-3773, for NutraCea Corporation