RiceBran said the relocation is a “critical step” toward the implementation of the company’s previously announced strategic plan to lower costs, improve EBITDA and raise shareholder value. The move is intended to significantly reduce costs by consolidating the company’s primary corporate activities within an existing West Sacramento distribution facility located in the middle of California’s rice industry, and to allow the company to build new and stronger relationships with industry participants in the area, such as bran suppliers and ingredient customers, RiceBran said.
Additionally, RiceBran said the new headquarters should better position the company to drive further product innovation by having greater access to scientists and technologies at the University of California, Davis, which is recognized in the areas of rice agriculture and processing, food and beverage innovation, and animal nutrition research.“The relocation of our corporate headquarters is an important step forward in the implementation of our strategic plan to transform all aspects of our ingredient business to a world-class level,” said Robert Smith, Ph.D., chief executive officer of RiceBran. “With our recent financing placing the company on more solid financial footing, we are methodically moving forward with this business realignment while we step up our marketing efforts to generate scalable supply opportunities with large CPG companies. We are dedicated to delivering on the strategy we outlined in the fourth quarter and seeing that effort lead to reduced operating costs, a better ability to service our customers, and the creation of more expansive revenue generating opportunities. We look forward to continuing on our mission to achieve sustainable, cash generating revenue growth for our company in order to maximize the value of our food technology and high value products for the benefit of our shareholders.”