0001140361-17-028307.txt : 20170720 0001140361-17-028307.hdr.sgml : 20170720 20170720172553 ACCESSION NUMBER: 0001140361-17-028307 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20170714 ITEM INFORMATION: Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20170720 DATE AS OF CHANGE: 20170720 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RiceBran Technologies CENTRAL INDEX KEY: 0001063537 STANDARD INDUSTRIAL CLASSIFICATION: GRAIN MILL PRODUCTS [2040] IRS NUMBER: 870673375 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 001-36245 FILM NUMBER: 17975008 BUSINESS ADDRESS: STREET 1: 2928 RAMCO STREET STREET 2: SUITE 120 CITY: WEST SACRAMENTO STATE: CA ZIP: 95691 BUSINESS PHONE: 6025223000 MAIL ADDRESS: STREET 1: 2928 RAMCO STREET STREET 2: SUITE 120 CITY: WEST SACRAMENTO STATE: CA ZIP: 95691 FORMER COMPANY: FORMER CONFORMED NAME: NUTRACEA DATE OF NAME CHANGE: 20030930 FORMER COMPANY: FORMER CONFORMED NAME: NUTRASTAR INC DATE OF NAME CHANGE: 20011221 FORMER COMPANY: FORMER CONFORMED NAME: ALLIANCE CONSUMER INTERNATIONAL INC DATE OF NAME CHANGE: 20010418 8-K/A 1 form8ka.htm 8-K/A
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________

FORM 8-K/A
(Amendment No. 1)
____________________

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): July 14, 2017
____________________

RICEBRAN TECHNOLOGIES
(Exact Name of Registrant as Specified in Charter)
____________________

California
0-32565
87-0673375
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)

2928 Ramco Street, Suite 120
West Sacramento, CA
 
95691
(Address of Principal Executive Offices)
(Zip Code)

Registrant’s telephone number, including area code: (602) 522-3000

(Former name or Former Address, if Changed Since Last Report.)
____________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company           ☐          

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 
 

Introductory Note

On July 17, 2017, RiceBran Technologies (“Company”) filed a Current Report on Form 8-K (“Initial Form 8-K”) reporting the completion of the sale of the assets (“Asset Sale”) of its wholly-owned subsidiary, Healthy Natural, Inc. (“HN”), pursuant to the terms of the Asset Purchase Agreement dated as of July 14, 2017 and entered into by and among the Company, HN and United Laboratories Manufacturing, LLC.

The Company is filing this amendment to the Initial Form 8-K to provide the required pro forma financial information that was not filed with the Initial Form 8-K and to make disclosures under Items 2.04 and 8.01 of Form 8-K.

Item 2.04
Triggering Events that Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.

As previously disclosed on February 15, 2017 in the Company’s Current Report on Form 8-K, the Company entered into a securities purchase agreement on February 9, 2017 with certain accredited investors, pursuant to which the Company sold and issued an aggregate principal amount of $6,600,000 of original issue discount senior secured debentures (“Debentures”) and warrants to purchase an aggregate of 6,875,000 shares of common stock.

Pursuant to the terms of the Debentures, the holders of Debentures had the right to require the Company to redeem their Debentures for a price equal to the principal amount of the Debentures in connection with the completion of the Asset Sale. On July 14, 2017, all of the holders of the Debentures elected to require the Company to redeem the Debentures. In accordance with that election, the Company redeemed all the outstanding Debentures on July 14, 2017 following completion of the Asset Sale by paying to the holders of the Debentures a total of $6,600,000.

Item 8.01
Other Events

In addition to the payments described in Item 2.04 of this Current Report on Form 8-K, on July 14, 2017 the Company used $5,963,149 of the proceeds from the Asset Sale to pay all outstanding principal and accrued interest on its subordinated promissory notes.

Item 9.01
Financial Statements and Exhibits

(b) Pro forma financial information.

The unaudited pro forma financial information required by Item 9.01(b) of Form 8-K is included as Exhibit 99.2 hereto and incorporated herein by reference.

(d) Exhibits.
 

Exhibit
No.
Description
 
 
99.2
Pro Forma Financial Information listed in Item 9.01(b).
 

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
RICEBRAN TECHNOLOGIES
     
Date: July 20, 2017
By:
/s/ Robert Smith
   
Robert Smith
   
Chief Executive Officer
   
(Duly Authorized Officer)

 
 EX-99.2 2 ex99_2.htm EXHIBIT 99.2
Exhibit 99.2

Unaudited Pro Forma Financial Statements

On July 14, 2017, Rice Bran Technologies (the Company) completed the sale of Healthy Natural, Inc., (HN) its wholly-owned subsidiary, pursuant to an asset purchase agreement (Purchase Agreement) previously reported in the Company’s current report on Form 8-K filed with the SEC on July 17, 2017.

The unaudited pro forma financial statements have been developed by applying pro forma adjustments to The Company’s historical consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America and give effect to the divestiture of Healthy Natural, Inc.  The unaudited pro forma condensed statements of operations for the three months ended March 31, 2017 and 2016, and for the years ended December 31, 2016 and 2015, assume that the divestiture of Healthy Natural, Inc. occurred January 1, 2015. The unaudited pro forma balance sheet as of March 31, 2017, assumes that the divestiture occurred on that date.  The unaudited pro forma condensed consolidated financial statements are presented based on currently available information and are intended for informational purposes only.

These unaudited pro forma condensed consolidated financial statements are not necessarily indicative of what the Company’s results of operations or financial condition would have been had the divestiture been completed on the dates assumed.  In addition, they are not necessarily indicative of the Company’s future results of operations or financial condition.  Beginning in the second quarter of 2017, the historical financial results of Healthy Natural, Inc., for periods prior to the divestiture will be reflected in the Company’s consolidated financial statements as discontinued operations.

The unaudited pro forma financial statements should be read in conjunction with (i) the accompanying notes to the unaudited pro forma condensed consolidated financial statements, (ii) the audited consolidated financial statements and accompanying notes and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s Form 10-K for the year ended December 31, 2016, filed with the SEC on March 23, 2017, and (iii) the unaudited condensed consolidated financial statements and accompanying notes and “Management’s Discussion and Analysis of Financial Conditions and Results of Operations” included in the Company’s Form 10-Q for the three months ended March 31, 2017, filed with the SEC on May 12, 2017.

RiceBran Technologies
Pro Forma Condensed Consolidated Statements of Operations
Unaudited Three Months Ended March 31, 2017
 (in thousands, except share and per share amounts)

   
Historical
    
HN Divestiture
Pro Forma
Adjustments
    
Notes
    
Pro Forma
  
                         
Revenues
  
$
11,435
    
$
(4,418
)
  
(a)
    
$
7,017
  
Cost of goods sold
    
8,924
      
(3,022
)
  
(a)
      
5,902
  
Operating expenses
    
3,027
      
(227
)
  
(b)
      
2,800
  
Other expense
    
2,085
      
(1
)
  
(c)
          
             
(362
)
  
(g)
      
1,722
  
Loss before income taxes
    
(2,601
)
                  
(3,407
)
Income taxes
    
-
      
409
    
(i)
      
409
  
Net loss
    
(2,601
)
                  
(2,998
)
Net loss attributable to noncontrolling interest
    
319
                    
319
  
Net loss attributable to shareholders
    
(2,282
)
                  
(2,679
)
Dividends on preferred stock--beneficial conversion feature
    
(778
)
                  
(778
)
Net loss attributable to common shareholders
  
$
(3,060
)
                 
$
(3,457
)
                               
Loss per share attributable to common shareholders
                              
Basic
  
$
(0.32
)
                 
$
(0.36
)
Diluted
  
$
(0.32
)
                 
$
(0.36
)
                               
Weighted average number of shares outstanding
                              
Basic
    
9,657,543
                    
9,657,543
  
Diluted
    
9,657,543
                    
9,657,543
  

See Notes to Pro Forma Unaudited Condensed Consolidated Financial Statements

RiceBran Technologies
Pro Forma Condensed Consolidated Statements of Operations
Unaudited Three Months Ended March 31, 2016
(in thousands, except share and per share amounts)

   
Historical
    
HN Divestiture
Pro Forma
Adjustments
    
Notes
    
Pro Forma
  
                         
Revenues
  
$
10,051
    
$
(4,488
)
  
(a)
    
$
5,563
  
Cost of goods sold
    
7,814
      
(2,959
)
  
(a)
      
4,855
  
Operating expenses
    
3,727
      
(374
)
  
(b)
      
3,353
  
Other income
    
(1,352
)
                  
(1,352
)
Loss before income taxes
    
(138
)
                  
(1,293
)
Income taxes
    
-
      
404
    
(i)
      
404
  
Net loss
    
(138
)
                  
(889
)
Net loss attributable to noncontrolling interest
    
438
                    
438
  
Net loss attributable to shareholders
    
300
                    
(451
)
Dividends on preferred stock--beneficial conversion feature
    
(551
)
                  
(778
)
Net loss attributable to common shareholders
  
$
(251
)
                 
$
(1,229
)
                               
Loss per share attributable to common shareholders
                              
Basic
  
$
(0.03
)
                 
$
(0.13
)
Diluted
  
$
(0.03
)
                 
$
(0.13
)
                               
Weighted average number of shares outstanding
                              
Basic
    
9,215,684
                    
9,215,684
  
Diluted
    
9,215,684
                    
9,215,684
  

See Notes to Pro Forma Unaudited Condensed Consolidated Financial Statements

RiceBran Technologies
Pro Forma Condensed Consolidated Statements of Operations
Unaudited Year Ended December 31, 2016
(in thousands, except share and per share amounts)

   
Historical
    
HN Divestiture
Pro Forma
Adjustments
    
Notes
    
Pro Forma
  
                         
Revenues
  
$
39,405
    
$
(19,677
)
  
(a)
    
$
19,728
  
Cost of goods sold
    
31,436
      
(13,158
)
  
(a)
      
18,278
  
Operating expenses
    
19,100
      
(1,438
)
  
(b)
      
17,662
  
Other (income) expense, net
    
78
      
(2
)
  
(c)
          
             
(1,098
)
  
(g)
      
(1,022
)
Loss before income taxes
    
(11,209
)
                  
(15,190
)
Income taxes
    
(41
)
    
1,778
    
(i)
      
1,737
  
Net loss
    
(11,250
)
                  
(13,453
)
Net loss attributable to noncontrolling interest
    
2,720
                    
2,720
  
Net loss attributable to shareholders
    
(8,530
)
                  
(10,733
)
Dividends on preferred stock--beneficial conversion feature
    
(551
)
                  
(778
)
Net loss attributable to common shareholders
  
$
(9,081
)
                 
$
(11,511
)
                               
Loss per share attributable to common shareholders
                              
Basic
  
$
(0.97
)
                 
$
(1.23
)
Diluted
  
$
(0.97
)
                 
$
(1.23
)
                               
Weighted average number of shares outstanding
                              
Basic
    
9,338,370
                    
9,338,370
  
Diluted
    
9,338,370
                    
9,338,370
  

See Notes to Pro Forma Unaudited Condensed Consolidated Financial Statements

RiceBran Technologies
Pro Forma Condensed Consolidated Statements of Operations
Unaudited Year Ended December 31, 2015
(in thousands, except share and per share amounts)

   
Historical
    
HN Divestiture
Pro Forma
Adjustments
    
Notes
    
Pro Forma
  
                         
Revenues
  
$
39,896
    
$
(12,845
)
  
(a)
    
$
27,051
  
Cost of goods sold
    
31,826
      
(8,716
)
  
(a)
      
23,110
  
Operating expenses
    
14,346
      
(1,738
)
  
(b)
      
12,608
  
Other expense, net
    
4,476
                    
4,476
  
Loss before income taxes
    
(10,752
)
                  
(13,143
)
Income taxes
    
176
      
837
    
(i)
      
1,013
  
Net loss
    
(10,576
)
                  
(12,130
)
Net loss attributable to noncontrolling interest
    
2,308
                    
2,308
  
Net loss attributable to shareholders
    
(8,268
)
                  
(9,822
)
Dividends on preferred stock--beneficial conversion feature
    
-
                    
(778
)
Net loss attributable to common shareholders
  
$
(8,268
)
                 
$
(10,600
)
                               
Loss per share attributable to common shareholders
                              
Basic
  
$
(0.90
)
                 
$
(1.15
)
Diluted
  
$
(0.90
)
                 
$
(1.15
)
                               
Weighted average number of shares outstanding
                              
Basic
    
9,187,983
                    
9,187,983
  
Diluted
    
9,187,983
                    
9,187,983
  

See Notes to Pro Forma Unaudited Condensed Consolidated Financial Statements

RiceBran Technologies
Pro Forma Condensed Consolidated Balance Sheets
Unaudited March 31, 2017
(in thousands, except share amounts)

   
Historical
    
HN Divestiture
Pro Forma
Adjustments
    
Notes
    
Pro Forma
  
ASSETS
                        
Cash and cash equivalents
  
$
3,366
    
$
17,349
    
(e)
        
             
(12,563
)
  
(f)
    
$
8,152
  
Accounts receivable, net
    
2,944
      
(592
)
  
(d)
      
2,352
  
Inventories
    
4,028
      
(1,915
)
  
(d)
      
2,113
  
Deposits and other current assets
    
904
      
(23
)
  
(d)
      
881
  
Property and equipment, net
    
18,881
      
(1,019
)
  
(d)
      
17,862
  
Goodwill
    
790
      
(790
)
  
(d)
      
-
  
Intangible assets, net
    
206
                    
206
  
Operating taxes recoverable
    
1,203
                    
1,203
  
Other long-term assets
    
141
      
(25
)
  
(d)
      
116
  
Total assets
  
$
32,463
                   
$
32,885
  
                               
LIABILITIES
                              
Accounts payable and accruals
  
$
11,086
      
(825
)
  
(d)
          
             
4,594
    
(h)
    
$
14,855
  
Long-term debt
    
13,003
      
(45
)
  
(d)
          
             
(5,509
)
  
(f)
      
7,449
  
Derivative warrant liabilities
    
494
                    
494
  
Deferred tax liability
    
29
                    
29
  
Total liabilities
    
24,612
                    
22,827
  
                               
EQUITY
                              
Preferred stock
    
1,545
                    
1,545
  
Common stock
    
273,853
                    
273,853
  
Accumulated deficit
    
(262,879
)
    
9,261
    
(h)
          
             
(7,054
)
  
(f)
      
(260,672
)
Accumulated deficit attributable to noncontrolling interest
    
(416
)
                  
(416
)
Accumulated other comprehensive loss
    
(4,252
)
                  
(4,252
)
Total equity
    
7,851
                    
10,058
  
Total liabilities and equity
  
$
32,463
                   
$
32,885
  

See Notes to Pro Forma Unaudited Condensed Consolidated Financial Statements

RiceBran Technologies
Notes to Pro Forma Unaudited Condensed Consolidated Financial Statements

The unaudited pro forma financial statements give effect to the sale of Healthy Natural, Inc. (the Asset Sale) to be accounted for as a discontinued operation. The unaudited pro forma statements of operations for the three months ended March 31, 2017 and 2016, and for the years ended December 31, 2016 and 2015, are presented as if the sale occurred as of the beginning of those periods.  The unaudited pro forma balance sheet as of March 31, 2017, is presented as if the sale occurred on that date.

(a)
This adjustment reflects the elimination of revenues and cost of goods sold of Healthy Natural, Inc.
(b)
This adjustment reflects the elimination of operating expenses of Healthy Natural, Inc., excluding the anticipated effects of other costs that may be reduced or eliminated as a result of having completed the sale.
(c)
This adjustment reflects the elimination of interest expense related to of Healthy Natural, Inc. debt.
(d)
This adjustment reflects the elimination of the historical assets and liabilities of Healthy Natural, Inc.
(e)
This adjustment reflects the cash consideration received at closing of the Asset Sale net of $219 thousand of assumed liabilities, $519 thousand of advisory fees and $365 thousand of other costs of the Asset Sale.
(f)
This adjustment reflects the repayment of certain non-Healthy Natural, Inc. debt from proceeds of the Asset Sale and the estimated expense arising from the extinguishment of that debt.  This estimated expense arising from the extinguishment has not been reflected in the pro forma statements of operations as it is considered to be nonrecurring in nature.
(g)
This adjustment reflects the elimination of interest expense on the registrant debt referred to in footnote (f).
(h)
This adjustment reflects the estimated gain arising from the transaction. The estimated gain has not been reflected in the accompanying statements of operations as it is considered to be nonrecurring in nature.  No adjustment has been made to the sales proceeds to give effect to any potential post-closing adjustments under the terms of the Purchase Agreement.  The estimated gain includes a provision for income taxes of $4.6 million. which may be due on the Asset Sale.  The Internal Revenue Service rules in this area are complex and the registrant has not yet completed an analysis of what net operating losses, if any, will be available to reduce the taxes owed on the gain.
(i)
This adjustment reflects income tax expense of 35% on adjustments (a), (b) and (c).