RiceBran Technologies (NASDAQ:RIBT) fell 12% after announcing a definitive agreement with an institutional investor to purchase securities. Once the agreement is finalized, the company will be eligible to receive gross proceeds of around $3 million, excluding any proceeds realized once the investor exercises warrants.
According to the agreement, the investor has agreed to purchase 2.3075 million common shares of the company at $0.65 per share. Equally, the investor will agree to buy around 2.308 million warrants of the common shares at an exercises price of $0.65 per share after issuance.
Additionally, the investor will purchase another 2.308 common shares warrants exercisable at $1 per share. The exercise prices can change on the 1st and 2nd anniversaries from the date of issuance should 110% of the five-day average volume-weighted price fall below the current exercise price. The deal is subject to closing conditions and will take place on September 13, 2021. So, in the coming weeks, RIBT is worth watching.
Market Reaction:
On Thursday, RIBT stock fell 11.85% at $0.6620 with more than 1.41 million shares, compared to its average volume of 214k shares. The stock has moved within a range of $0.6616 – 0.7398 after opening the trade at $0.71
