NutraCea, a world leader in stabilized rice bran (SRB), nutrient research and technology announced today it has closed a new credit facility with Wells Fargo Business Credit, a division of Wells Fargo Bank, N.A. The initial rate of interest varies from prime plus 2.5% to prime plus 3%.
NutraCea plans to use this facility to partially fund further expansion of certain projects that it currently has under construction and to enhance its ability to have additional liquidity available for the Company.
Olga Hernandez-Longan, Chief Financial Officer of NutraCea commented, "At a time when much of corporate America is finding access to traditional banking facilities extremely difficult, we are pleased to announce we have closed this new credit facility with Wells Fargo, further validating the financial strength of the Company and its prospects going forward. This facility will provide us with flexibility in financing our projects both here in the U.S. and Brazil and offers the Company additional liquid reserves as an alternative to issuing additional equity, as we continue to grow our business."
NutraCea is a world leader in production and utilization of stabilized rice bran. They hold many patents for stabilized rice bran production technology and proprietary neutraceutical formulas ranging from arthritis, chronic bowel conditions, and effective diabetes control to cardiovascular disease treatment protocols. NutraCea's proprietary technology enables the creation of food and nutrition products to be unlocked from rice bran, normally a waste by-product of standard rice processing. Committed to helping the under fed, they're heavily involved in providing product and technology for developing countries through NutraCea's RiceAde feeding program. More information can be found in the Company's filings with the SEC and you can visit the NutraCea web site http://www.NutraCea.com.
Forward Looking Statements
This release contains forward-looking statements, including statements regarding NutraCea's planned use of loan facility funds. Actual results may differ from those projected due to a number of risks and uncertainties, including, but not limited to the matters specified in the Company's filings with the Securities and Exchange Commission. These statements are made based upon current expectations that are subject to risk and uncertainty. The Company does not undertake to update forward-looking statements in this news release to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking information. Assumptions and other information that could cause results to differ from those set forth in the forward-looking information can be found in the Company's filings with the Securities and Exchange Commission, including the company's most recent periodic report.