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Terrible management. Over promise and under deliver...
I was taken in by their talk. Bought a massive quantity above the old $1. Biggest loss of my career.
Looks like a sale of the company is in the works. Any idea what a sale price would be?
Earnings call ended quickly with just a few prepared remarks. No questions were allowed as CEO said company is in the midst of strategic alternatives.
Link to earnings call starting in a few minutes at 4.30 est
https://www.webcaster4.com/Webcast/Page/2631/47775
Link to earnings press release
https://finance.yahoo.com/news/ricebran-technologies-reports-fourth-quarter-200600055.html?.tsrc=rss
Setbacks in Value-add SRB derivatives weigh on overall results. RiceBran's Value-add SRB derivatives business saw a significant decline in revenue and contribution to adjusted EBITDA in 2022 that offset gains elsewhere. Setbacks in this business were driven by raw material and processing issues which led to inadequate production and resulted in customer losses in the face of new competition.
In light of RiceBran's challenges in achieving its operating and financial targets in 2022, the Company is currently undergoing a strategic review of all the possible alternatives to generate improved returns to its shareholders.
Joel Rosenfeld from Kensington Capital Corp. Joel, your line is live.
Joel Rosenfeld
Yeah. Hi, good afternoon. I'm listening to the conference call. I'm a fairly -- I'm basically following the company for the past year, 1.5 years. The shareholders I believe are not sleeping well at night. The directors, I really appreciate the fact that you put them on stock-only-based compensation. But somehow the compensation compared to how the company is doing earnings-wise not sales-wise they seem to be turning around hopefully, but the past 20 years being on promises and promises and promises. And then if everything you've said is done, the rug gets pulled out, and we do a heavily diluted offering to raise $1.2 million. Something is -- I don't know. Explain to me what's going on here? I mean it looks very strange to me.
Yes next quarter... But that is only a carrot... For next quarter's great things won't really happen. something or the other will go kaputt... But not to worry the subsequent quarters will be great.
Book value means nothing when in the hands of this management. I am looking forward to Xmas dinner pictures on their twitter link. Thanks management for picture of Thanksgiving dinner.
Aren't they looking for organic bran? Rather than just bran.
I used to join earnings conference calls and ask management of companies questions. But have given up on that.
You can just call them and still ask them your questions.
If Fergusson is going to handle operations of Golden Ridge, shouldn't the SG&A come down substantially?
Just a year ago the CEO was saying significant profitability lay ahead. Five quarters later they sound like they have zero control over anything! No wonder they did that horrible dilution with boatload of warrants at 1.6.
Why does the CFO choose to dilute when the stock is weak? There were two dilutions one at 65c. The stock was strong above $1 for many months. But when the stock broke $1, he diluted at 65c.
This year the stock had spiked to 90c on a pump on massive volume. But he decided to dilute two months later at 15c (1.5 post split)
https://equity.guru/video/ricebran-technologies-ribt-q-first-glance-with-jody-vance-e99/
This call sounded so different from all the previous calls I listened to. Management sounded very defensive. No talk about oats, barley or new products. Last call they were talking about sale of some assets, having made substantial progress in this regard. No update on this.
Numerous dilution cycles ahead I think.
The first caller Joe Rosenthal sounds just like me. He has been in the stock for the same time as me.
I think it is difficult to get a new pet foods customer. Will the customer stick with them?
New customer relationship screwed up already? I didn't listen to the call yet.
This management is terrible. Trusting their words for the last 16 months has given me the biggest loss of my investment career of more than two decades.
They had said they didn't need to raise any money and were very close to profitability. That is usually a solid vote of confidence. This was around May or so of last year. And I started accumulating around $1 pre split.
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New customer wins for core-SRB business to ramp slower than expected. Core-SRB sales were up double-digits year-over-year for the third quarter in a row. The Company began supplying a new pet food customer in August, but volumes for this business will fall short of expectations in the fourth quarter due to a technical issue. This issue was known when shipments began but will need to be remediated sooner than expected to achieve the targeted inclusion rate and scale the business as expected. The Company will attempt to compensate with spot market sales, but the outlook for this business has been tempered in the interim.
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Source
https://finance.yahoo.com/news/ricebran-technologies-reports-third-quarter-201500218.html?.tsrc=rss
Watched this interview with Todd again.
https://equity.guru/video/ricebran-technologies-ribt-q-first-glance-with-jody-vance-e99/
Deal is supposed to close today. Volume may show up later as deal participants are already under water.
X-Ray... Didn't you do a podcast with Ben Rabizadeh explaining the sale of Continental shares and other items related to RBIT?
What happened to your twitter account? It seems to be inactive/suspended.
All these capital raises and not a PR explaining anything. At a time when they had said that they would be communicating better with the shareholders during the last two earnings calls.
The company intends to use the net proceeds from the offering for general corporate purposes, including funding capital expenditures and working capital and repaying indebtedness.
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If they had anything positive to say they would have said in the PR from yesterday. They had the above. The new shares were issued at 1.6 and shows the deal was negotiated from a point of extreme financial weakness. They thought it was worth grabbing the money at 1.6 knowing well the stock would likely dip below 1 again. Management simply didn't think it was worth waiting for a spike in price before dumping more shares.
Extremely terrible financial condition. No other way of spinning it.
What's baffling is that they seemed to be flush with cash with the impending sale of some assets.
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Plus they were doing cost cutting. Management too took a pay cut. And had made substantial progress on diversifying some of their rice milling assets.
Today's dilution is a shocker, which clearly indicates to terrible near term news, when in fact they had said that they were looking forward to substantial revenue growth in the second half and the coming year.
Does this company like to play peek a boo with RS and stock price under 1? To do a dilution so close to 1 after doing a RS is a clear indication of the quality of the management and their skills at knowing where the business is heading.
CFO had opportunity to raise money at much higher prices. But they didn't. They were close to selling mills. So something really bad must have happened AGAIN. To go this massive dilution route AGAIN.
I don't think that I can trust this management anymore.
They were close to selling some of their mills?
This dilution is massive. 3m shares! At 1.6 or so.
Definitely the upcoming earnings news is going to be disappointing. Some other equipment failure? Another unforseen issue?
Todd Mitchell
I think our -- yes, one over the other of us. The plan, first is to operate this year at sort of a cash flow neutral, except for our capital expenditures and hold capital expenditures at a sort of a very reasonable level this year. So to be kind of fully funded. That being said, I think we are identifying parts of the business where the return on investment would be very high. But certainly, there is no need for capital to fund operations.
It only would be to fund opportunities.
Peter Bradley
Just to add to that, I think over the next 12 months, CapEx will be relatively modest as we head into 2022 towards the end of 2022 into '23, if this -- if we start to tap into this opportunity, then it will be -- we will need more capital. But as Todd rightly pointed out, the ROI on that capital will be significant.
https://seekingalpha.com/article/4426578-ricebran-technologies-ribt-ceo-peter-bradley-on-q1-2021-results-earnings-call-transcript
This is massive dilution at a price when the stock has cratered. Totally disappointing. Why didn't they raise cash when the stock was at 70cents ($7 post split) just a few months ago.
RiceBran Technologies (NASDAQ:RIBT) to raise $1.5M through a definitive securities purchase agreement with institutional investors for the purchase and sale of 1M shares of the company's common stock at a purchase price of $1.50/share of common stock in a registered direct offering.
The closing of the offering is expected to occur on or about October 20, 2022.
In addition, in a concurrent private placement, the company will issue to the investors warrants to purchase up to 2M shares of common stock.
The warrants have an exercise price of $1.60/share, are exercisable six months following issuance and will have a term of two and one-half years from the initial exercise date.
https://finance.yahoo.com/news/ricebran-technologies-announces-1-5-122000984.html?.tsrc=rss
Looks like something else got screwed up this quarter. Expecting a disappointing quarter with the usual great things about to happen soon carrot!
They had said last year they didn't need to raise money and have already twice raised capital since that.
Stock drops. Wow any comments?
https://finance.yahoo.com/news/ricebran-technologies-announces-1-5-122000984.html?.tsrc=rss
Pumped again by Matlock. Hence up.
https://twitter.com/PJ_Matlock
Thanks static.
These improvements have significantly expanded capacity and should allow the mill to continue to grow offer much larger revenue base. That being said, I indicated last quarter that I believed it was in the company's best interest to exit the primary rice milling business. And while we're not ready to announce anything specific as yet, I can assure you we have made significant progress to move in towards that goal.
source:
https://seekingalpha.com/article/4533297-ricebran-technologies-ribt-ceo-peter-bradley-on-q2-2022-results-earnings-call-transcript
Thanks Wow.
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From 4 years ago.
RiceBran Technologies on Nov. 5 exercised its option to acquire the assets and operations of Golden Ridge Rice Mills’ milling facility in Wynne, Ark. Total consideration of the transaction is expected to be approximately $7 million to $8 million,
Some questions .. If they are looking to exit rice milling then ...
1) What is the estimated cash influx from the sale of those assets?
2) What would be the drop in revenues from this discontinued business?
3) What be the reduction in expenses going forward?
Thanks
https://www.bakingbusiness.com/articles/47425-ricebran-exercises-option-to-acquire-golden-ridge-rice-milling-facility
2.48 now.... Looks like people were not expecting a RS!
Link to audio and transcript of last earnings call.
https://seekingalpha.com/article/4533297-ricebran-technologies-ribt-ceo-peter-bradley-on-q2-2022-results-earnings-call-transcript
They took a writedown + they couldn't deliver additional revenue because of the issue with enzyme losing its organic status...
So double whammy in the quarter?
1) With the stock above 70c and the two recent PRs on capacity expansion and the revenue growth in the last quarter, it is very likely that Mark Smith will upgrade the stock now that his bearish stance based on supply chain issues no longer holds.
https://www.lakestreetcapitalmarkets.com/team/mark-smith
2) It would also be nice to see some insider buying.
It will be interesting to see which funds bought Conti's shares
Looks like heavily shorted based on this rate...
https://stocktwits.com/DefinitleyNotKalco/message/462581359
Snippet of conversation with investor relations of RIBT...
https://twitter.com/PJ_Matlock/status/1530185290911981568