Under the terms of the agreement Zurvita is committed to purchase a minimum of $7.6 million of the proprietary Stage II product through December 31, 2016. RiceBran Technologies is contractually committed to provide Zurvita priority access to that Stage II product being produced under patent in its Dillon, MT, plant. This agreement is a significant next step in RiceBran Technologies' focus on developing multi-year, strategic partnerships with key players across diverse distribution channels to maximize the use of its proprietary and patented process and production capabilities.
W. John Short, CEO and president of RiceBran Technologies commented, "We are excited to complete this multi-year contract with Zurvita as we move forward with the re-launch of our Nutraceutical and Functional Foods (NFF) business. With market demand requiring major consumer products companies to deliver more products that are natural, minimally processed, hypo-allergenic, gluten-free and non-genetically modified, we are particularly well positioned to gain market share in this rapidly growing, high margin market segment. With our corporate repositioning now largely behind us, we intend to step up our marketing efforts to drive increased sales in all NFF categories. We are committed to leveraging our proprietary and patented technologies to establish our company as an innovative leader in this important industry for years to come."