RiceBran Technologies Faces Financial Challenges after Asset Sale

RiceBran Technologies, a California corporation, recently found itself in a financially precarious position. The company, amidst mounting debt obligations, entered into a Secured Party Asset Purchase Agreement with Funicular Funds, LP, the holder of the notes on October 31, 2024. This agreement stemmed from multiple secured promissory notes that RiceBran Technologies had issued to the Secured Party, totaling $5.4 million.

Acknowledging default events on September 20, 2024, the Secured Party accelerated the maturity of the company’s debt obligations. This situation led to a public auction on October 24, 2024, where certain company assets, referred to as Transferred Assets, were sold to Funicular as part of a foreclosure action under the Uniform Commercial Code.

Following the completion of the auction and asset sale, RiceBran Technologies effectively ceased its business operations. The sale resulted in the company having no further operational assets.

The details of the Secured Party Asset Purchase Agreement, including specifics of the agreement and the foreclosure proceedings, are available in Exhibit 10.1 of the report.

RiceBran Technologies, which has its principal executive offices in Tomball, TX, has faced significant financial challenges, culminating in the sale of its assets to resolve outstanding debt obligations. The company’s future business prospects remain uncertain following the completion of this substantial asset sale.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read RiceBran Technologies’s 8K filing here.

RiceBran Technologies Company Profile

RiceBran Technologies, together with its subsidiaries, operates as a specialty ingredient company in the United States and internationally. The company focuses on development, production, and marketing of products derived from traditional and ancient small grains. It also 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.