PHOENIX, April 25 NutraCea(OTC Bulletin Board: NTRZ), a world leader in stabilized rice bran (SRB),nutrient research and technology, today announced that it has entered intodefinitive agreements to sell securities to selected institutional investorsfor aggregate gross proceeds of $20,000,000. The offering is made pursuant tothe Form S-3 shelf registration statement that was filed by NutraCea with theSecurities and Exchange Commission (the "SEC") and declared effective by theSEC on April 8, 2008. The offering is expected to close on or about April 30,2008, subject to the satisfaction of customary closing conditions. NutraCeaintends to use the net proceeds from the offering for general corporatepurposes, for working capital and operational purposes and future acquisitionsand strategic investment opportunities.
The securities in the offering include up to 22,222,223 shares of NutraCeacommon stock and warrants to purchase up to 6,666,666 shares of NutraCeacommon stock, which securities are being offered in "units" at a price of $.90per unit. Each unit consists of one share of NutraCea common stock and a 5year warrant to purchase 0.3 of a share of NutraCea common stock at anexercise price of $1.20 per share for each share of common stock that theinvestor purchases in the offering.
Rodman & Renshaw, LLC, a wholly owned subsidiary of Rodman & RenshawCapital Group, Inc. (Nasdaq: RODM), acted as the exclusive placement agent forthe offering.
This press release shall not constitute an offer to sell or thesolicitation of an offer to buy, nor shall there be any sale of thesesecurities in any jurisdiction in which such offer, solicitation or sale wouldbe unlawful. Any offer will be made only by means of a prospectus, including aprospectus supplement, forming a part of the effective registration statement.Copies of the prospectus supplement together with the accompanying prospectuscan be obtained at the Securities and Exchange Commission's website athttp://www.sec.gov or from Rodman & Renshaw, LLC, 1270 Avenue of the Americas,16th Floor, New York, NY, 10020.
NutraCea is a leader in stabilized rice bran nutrient research and dietarysupplement development. Through its wholly owned subsidiary RiceX, the companymanufactures and distributes products and food ingredients made from rice branthrough its proprietary technology and processes. The company has developedintellectual properties to create a range of proprietary product formulations,delivery systems and whole food nutrition products. NutraCea's proprietarytechnology enables the creation of food and nutrition products from rice bran,normally a wasted by-product of standard rice processing. In addition to itswhole foods products, NutraCea develops families of health-promoting"nutraceuticals," including natural arthritis relief and cholesterol-loweringproducts. More information can be found in the company's filings with theSEC, and at the company's Web site http://www.NutraCea.com.
Safe Harbor Statement
This release contains forward-looking statements, including statementsregarding our production capability, revenue growth, profitability, futureacquisitions and strategic opportunities. Actual results may differ fromthose projected due to a number of risks and uncertainties, including, but notlimited to the matters specified in the Company's filings with the Securitiesand Exchange Commission. These statements are made based upon currentexpectations that are subject to risk and uncertainty. The Company does notundertake to update forward-looking statements in this news release to reflectactual results, changes in assumptions or changes in other factors affectingsuch forward-looking information. Assumptions and other information that couldcause results to differ from those set forth in the forward-lookinginformation can be found in the Company's filings with