Scottsdale / AZ. (rbt) RiceBran Technologies (up to October 2012 NutraCea), a global leader in the production and marketing of value added products derived from rice bran, announced that the US District Court for the District of Arizona has entered a final judgement in the Company’s favor for a total of 1.9 million USD plus interest related to the Company’s 2008 acquisition of its Brazilian subsidiary, Irgovel.
This final judgement affirms the previously disclosed arbitral award of 4.8 million BRL from a Brazilian arbitration panel in May of 2015 and paves the way for the release of the 1.9 million USD that has been held in escrow at a San Francisco bank in 2008 since the acquisition of Irgovel. The Company expects the funds to be released in the next 30 to 60 days. While all parties involved have the right to appeal the judgement within 30 days of it having been entered, the Company believes it is unlikely that any appeal is forthcoming.
W. John Short, CEO and President, commented: «This has been a long and arduous arbitration process. We are pleased to have finally closed this chapter in our Company’s history with this favorable judgement. We look forward to the release of escrow funds in the coming weeks so that we can put this money to work by paying down our USA segment senior secured debt and by supporting our company-wide working capital needs».
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