PHOENIX— NutraCea (PINK:NTRZ) signed an asset purchase agreement to sell the rights to its Natural Glo, Satin Finish and Max-E-Glo equine brands, trademarks and intellectual property (IP) to Manna Pro Products LLC for approximately $650,000. NutraCea will also sell Manna Pro certain bags, packaging materials and bagged inventory at NutraCea’s cost, and has agreed not to sell equine positioned stabilized rice bran products to certain customers. Upon the deal closing, NutraCea will also become the exclusive supplier of stabilized rice bran to Manna Pro for the product lines associated with the purchased assets; those products will be co-branded with a NutraCea stabilized rice bran logo.
W. John Short, chairman and CEO, NutraCea, stated, “We are very pleased to have agreed to this asset sale and co-branded supply arrangement. Manna Pro is a recognized leader in the animal nutrition industry with significantly broader distribution capabilities than NutraCea. The sale of these equine brands allows NutraCea to step back from managing brands in competition with Manna Pro and other important customers, and to focus on our core competency of supplying stabilized rice bran in bulk to all of our animal and human nutrition customers. We look forward to working with the Manna Pro team to significantly increase the business we do together. This sale is another step in our previously announced asset monetization and restructuring plan that will allow our team to focus on building profitable sales in our core product groups including stabilized rice bran, defatted bran, rice bran oil and nutraceutical and pharmaceutical products derived from stabilized rice bran.”
Completion of the asset sale is subject to a variety of customary closing conditions and the approval of the transaction by the U.S. Bankruptcy Court, as NutraCea filed for Chapter 11 bankruptcy protection in November 2009 to restructure its operations.
