Marrone Bio Innovations Announces Completion of Audit Committee Investigation; Update on Financial Statement Review and Status of NASDAQ Continued Listing

DAVIS, California, February 4, 2015 — Marrone Bio Innovations, Inc. (NASDAQ: MBII) today announced the results of the previously announced internal investigation conducted by the Audit Committee of its Board of Directors (the “Committee”) regarding certain accounting and other matters.

The Audit Committee Investigation

In September 2014, upon the recommendation of management the Committee commenced an independent investigation concerning certain revenue recognition issues. The Committee’s investigation is now substantially completed.

As part of its investigation, the Committee reviewed certain of the Company’s historical sales transactions with distributors.  The principal findings of the Committee were that (i) certain employees did not share with the Company’s finance department or the external auditors certain important transactional terms, (ii) certain sales personnel executed inaccurate “sales representation” letters, which are intended to inform the Company’s finance department and the external auditors of any commitments not included on a customer purchase order provided to the finance department, and (iii) certain employees mischaracterized expenses related to agreements to pay for the storage and freight fees associated with certain transactions.  As a result, the Committee concluded that the Company recognized revenue for certain transactions prior to satisfying the criteria for revenue recognition required under U.S. Generally Accepted Accounting Principles.  In addition, the Committee found that supply chain personnel were directed to ship the wrong product to a customer because the Company did not have the ordered product readily available.  The employees primarily responsible for the foregoing conduct are no longer with the Company.

The Committee concluded that the Company can rely on current management to accurately prepare the Company’s financial statements.  The Committee also made certain remedial recommendations, which the Company intends to implement promptly.

The San Francisco Regional Office of the United States Securities & Exchange Commission has opened an investigation of this matter, with which the Company has been cooperating fully.

Financial Statement Review

In light of the Committee’s findings, management of the Company is evaluating the necessity, nature and scope of any restatements to any of its previously filed financial statements.  Due to the ongoing nature of this evaluation, the Company cannot at this time provide an estimate of the timing, extent, or effect of any such restatement.

In addition, management is considering the Company’s prior conclusions of the adequacy of its internal control over financial reporting and disclosure controls and procedures, and related material weaknesses in such controls.  The Company intends to amend certain prior disclosures pertaining to its evaluation of such controls and procedures, and material weaknesses, as appropriate in connection with any amended filings, and will consider whether any further remedial measures may be advisable.

NASDAQ Matters

On November 14, 2014, the Company filed with the Commission a Form 12b-25 Notification of Late Filing relating to its Quarterly Report on Form 10-Q for the quarter ended September 30, 2014 (the “Form 10-Q”).  The Company reported in the Form 12b-25 that it was unable to complete the filing pending completion of the Audit Committee’s investigation.

As previously reported, on November 17, 2014, the Company received a letter from The NASDAQ Stock Market LLC (“NASDAQ”) indicating that the Company is not in compliance with the filing requirements for continued listing under NASDAQ Listing Rule 5250(c)(1) as a result of the Company’s delay in filing the Form 10-Q.  In accordance with the requirements set forth in the letter, the Company submitted a plan to regain compliance with NASDAQ’s filing requirements for continued listing on January 16, 2015. On January 27, 2015, the Company received a letter from NASDAQ granting the Company an extension until May 13, 2015 to file any delinquent reports and regain compliance.

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About Marrone Bio Innovations

Marrone Bio Innovations, Inc. (NASDAQ: MBII) is a leading provider of bio-based pest management and plant health products for the agriculture, turf and ornamental and water treatment markets. Our effective and environmentally responsible solutions help customers operate more sustainably while controlling pests, improving plant health, and increasing crop yields. We have a proprietary discovery process, a rapid development platform, and a robust pipeline of pest management and plant health product candidates. At Marrone Bio Innovations we are dedicated to pioneering better biopesticides that support a better tomorrow for users around the globe. For more information, please visit www.marronebio.com.

Forward Looking Statements

Portions of this press release may constitute “forward-looking statements,” and assumptions underlying such forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 (the “PSLRA”), Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Any such forward-looking statements are made within the “safe-harbor” protections of the PSLRA, should not be relied upon as representing our views as of any subsequent date, and we are under no obligation to, and expressly disclaims any responsibility to, update or alter these forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements in this filing include those regarding: the Company’s implementation of remedial measures recommended by the Audit Committee, the ongoing SEC investigation, the necessity, nature and scope of any restatements to the Company’s  previously filed financial statements, the identification and implementation of remedial measures, results of management’s review of, and amendments to prior disclosures regarding, internal controls over financial reporting and disclosure controls, expectations regarding the timing of the Company’s periodic reports and expectations regaining full compliance with Nasdaq continued listing requirements. Such forward-looking statements are based on information available to us as of the date of this release and involve a number of risks and uncertainties, some beyond our control, that could cause actual results to differ materially from those anticipated by these forward-looking statements. Such risks include uncertainty surrounding management’s ongoing evaluation of any potential restatements to any of the Company’s previously filed financial statements, the types of errors and adjustments that may be required in any such restatement, the extent of any material weaknesses or significant deficiencies in the Company’s internal and disclosure controls, how promptly and thoroughly the recommendations of the Audit Committee can be implemented, potential legal or regulatory action related to the matters under investigation, and adverse decisions by the SEC or NASDAQ. In addition, the Company faces other risks and uncertainties that could affect its ability to complete the restatement of its financial statements, to file its periodic reports, and to regain compliance with the NASDAQ listing requirements. Additional information that could lead to material changes in the Company’s performance is contained in its filings with the Securities and Exchange Commission.

Marrone Bio Innovations’ REGALIA® MAXX Biofungicide Approved For New Uses In Canada

Plant Extract-Based Fungicide Brings Canadian Growers Expanded Solution for Protecting Against Disease, Resulting in Higher Quality Crops and Enhanced Yields

DAVIS, Calif., Jan. 22, 2015 — Marrone Bio Innovations, Inc. (MBI), (Nasdaq:MBII), a leading provider of bio-based pest management and plant health products for the agriculture, turf and ornamental and water treatment markets, today announced that its REGALIA® MAXX biofungicide has received approval for new uses in Canada. REGALIA MAXX is a plant extract-based advanced biofungicide that activates plants’ natural defenses to boost plant vigor, combat fungal and bacterial diseases, and enhance yield potential.

The recently approved new uses for REGALIA MAXX in Canada include outdoor and greenhouse grown ornamental plants, annual and perennial flower plants, greenhouse grown peppers, and outdoor grown highbush blueberries, apples and turf. Health Canada’s Pest Management Regulatory Agency initially approved REGALIA MAXX biofungicide in April 2012 for outdoor and greenhouse use on a variety of fruits and vegetables, as well as on wheat and ornamentals. Brock Puddicombe, Product Manager at Engage Agro “believes that these new uses will continue to help growers remain competitive as they compete in world markets.” REGALIA MAXX, will continue to be distributed exclusively in Canada by Engage Agro, a leading Canadian distributor specializing in high-value fruit and vegetable crops.

“We are pleased that REGALIA MAXX has been approved for new uses in Canada, bringing growers an expanded environmentally responsible and effective solution for managing pests in conventional and organic crops,” said MBI CEO Pam Marrone. “MBI is well-positioned to expand the footprint of REGALIA MAXX in Canada as growers look to strengthen their integrated pest management programs, improve plant health, boost yields and increase profitability.”

“The expanded use label for REGALIA MAXX will provide Ontario greenhouse vegetable producers with a valuable tool for managing powdery mildew on tomatoes and peppers and for downy mildew on cucumber, while apple, blueberry and turf growers gain an additional product to integrate into their disease control programs,” said Jim Chaput, Provincial Minor Use Coordinator for the Ontario Ministry of Agriculture, Food and Rural Affairs.

REGALIA MAXX is the first biopesticide with Induced Systemic Resistance (ISR), a complex mode of action which creates a defense response in the treated plants and stimulates additional biochemical pathways that strengthen the plant structure and act against the pathogen.

REGALIA MAXX is an advanced biofungicide that can minimize chemical residues by being used alone in a disease-control program, particularly for exported crops at the end of the season right before harvest or in rotation with synthetic fungicides or in a tank mix. The product induces a plant’s natural defenses to protect against a variety of fungal and bacterial diseases and features multiple modes of action, which helps to prevent or delay the development of disease resistance. It also provides a minimal for the REI cite re-entry interval that increases operational flexibility and a zero-day post-harvest interval so crop quality can be protected right up to harvest. REGALIA MAXX is proven to suppress diseases such as powdery mildews on cucurbits (melons, cucumber, zucchini), cane berries, tomatoes (including tomatillo), eggplant, peppers, grapes and ornamentals; as well as Alternaria on tomatoes and potatoes.

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About Marrone Bio Innovations

Marrone Bio Innovations, Inc. (NASDAQ: MBII) is a leading provider of bio-based pest management and plant health products for the agriculture, turf and ornamental and water treatment markets. Our effective and environmentally responsible solutions help customers operate more sustainably while  suppressing important pests, improving plant health, and increasing crop yields. We have a proprietary discovery process, a rapid development platform, and a robust pipeline of pest management and plant health product candidates. At Marrone Bio Innovations we are dedicated to pioneering better biopesticides that support a better tomorrow for users around the globe. For more information, please visit www.marronebio.com.

Forward Looking Statements

Portions of this press release may constitute “forward-looking statements,” and assumptions underlying such forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 (the “PSLRA”), Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Any such forward-looking statements are made within the “safe-harbor” protections of the PSLRA, should not be relied upon as representing our views as of any subsequent date, and we are under no obligation to, and expressly disclaims any responsibility to, update or alter these forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements in this filing include those regarding driving growth, enhancing market leadership and increasing value for shareholders. Such forward-looking statements are based on information available to us as of the date of this release and involve a number of risks and uncertainties, some beyond our control, that could cause actual results to differ materially from those anticipated by these forward-looking statements. Such risks include adverse weather conditions and seasonality that may affect sales, failure of customers to adopt our products, the high level of competition in the market for pest management products, inability to maintain and further establish successful relationships with third-party distributors, the failure of our third-party distributors to sell to end users and uncertainty surrounding the timing and results of the Audit Committee’s independent investigation of accounting matters. Additional information that could lead to material changes in our performance is contained in our filings with the Securities and Exchange Commission.

James Iademarco Joins Marrone Bio Innovations As President And Chief Operating Officer

January 14, 2015, DAVIS, CA — Marrone Bio Innovations, Inc. (MBI), (NASDAQ: MBII), a leading provider of bio-based pest management and plant health products for the agriculture, turf and ornamental and water treatment markets, today announced that James Iademarco has joined the company as its President and Chief Operating Officer. Mr. Iademarco will have responsibility for directing operations of the company, including sales, marketing, manufacturing and corporate infrastructure, with a particular focus on driving sustainable revenue growth.

Pam Marrone, Chief Executive Officer of Marrone Bio Innovations, said, “We are very pleased to have an experienced executive join MBI from the agriculture, industrial fermentation and materials industries to drive excellence throughout our operations. I expect that we will be a powerful team as we continue to implement our growth strategy and sharpen our focus on driving value to our shareholders.”

Most recently, Mr. Iademarco founded and ran Strategic Avalanche, a global consulting firm focused on the agriculture, biotechnology, renewable chemicals and material sectors. Strategic Avalanche enabled sustainable growth and value creation for a range of companies and was tasked to assess operations, refine business models, identify partnerships, structure go-to-market initiatives and raise strategic capital. Prior to founding Avalanche, Mr. Iademarco was Vice President of Integration for Biomedical Materials and Vice President, Biobased Chemicals and Materials for Royal DSM in Europe. Prior to DSM, he was General Manager, Biomaterials, New Business Ventures, for Bayer Crop Science, where he led strategic investments spanning agricultural biotechnology, nutrition and biofuels and led teams to create a new biomaterials platform and to leverage existing agriculture trait technologies. Before Bayer, he was Director of Business Development for Diversa and he held several positions of increasing responsibility at Monsanto Company and Solutia. He started his career at Monsanto in crop protection sales and marketing.

“I am thrilled to join MBI in a key senior leadership position,” said Mr. Iademarco. “We have a great opportunity to develop the most exciting segment of ag inputs — biologicals for pest management and plant health. I am very impressed by MBI’s position in the market, with a number of science-based, effective products already launched, and with a strong and promising pipeline of new products. I look forward to working with the Board, our management team and employees to ensure that we work hard to drive growth, enhance our market leadership position and create sustainable value for our shareholders.”

Elin Miller, MBI’s Chairwoman of the Board, commented, “We are excited to bring on an executive with James’ level of operational expertise. The Board looks forward to working closely with James and Pam to help drive MBI’s value.”

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About Marrone Bio Innovations

Marrone Bio Innovations, Inc. (NASDAQ: MBII) is a leading provider of bio-based pest management and plant health products for the agriculture, turf and ornamental and water treatment markets. Our effective and environmentally responsible solutions help customers operate more sustainably while controlling pests, improving plant health, and increasing crop yields. We have a proprietary discovery process, a rapid development platform, and a robust pipeline of pest management and plant health product candidates. At Marrone Bio Innovations we are dedicated to pioneering better biopesticides that support a better tomorrow for users around the globe. For more information, please visit www.marronebio.com.

Forward Looking Statements

Portions of this press release may constitute “forward-looking statements,” and assumptions underlying such forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 (the “PSLRA”), Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Any such forward-looking statements are made within the “safe-harbor” protections of the PSLRA, should not be relied upon as representing our views as of any subsequent date, and we are under no obligation to, and expressly disclaims any responsibility to, update or alter these forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements in this filing include those regarding driving growth, enhancing market leadership and increasing value for shareholders. Such forward-looking statements are based on information available to us as of the date of this release and involve a number of risks and uncertainties, some beyond our control, that could cause actual results to differ materially from those anticipated by these forward-looking statements. Such risks include adverse weather conditions and seasonality that may affect sales, failure of customers to adopt our products, the high level of competition in the market for pest management products, inability to maintain and further establish successful relationships with third-party distributors, the failure of our third-party distributors to sell to end users and uncertainty surrounding the timing and results of the Audit Committee’s independent investigation of accounting matters. Additional information that could lead to material changes in our performance is contained in our filings with the Securities and Exchange Commission.

Study Finds Marrone Bio Innovations’ ZEQUANOX® Highly Effective for Controlling Zebra Mussel Infestations In Shallow-Water Habitats In Lakes

January 6, 2015, DAVIS, CA — Marrone Bio Innovations, Inc. (MBI) [Nasdaq: MBII], a leading global provider of bio-based pest management and plant health products, announced today that the Regional Euro-Asian Biological Invasions Centre (REABIC) has published research from a study of Zequanox®, a naturally derived biopesticide for controlling zebra mussel infestations in the journal Management of Biological Invasions.

The results of the study, published by REABIC on December 18, 2014, indicate that Zequanox is highly effective for controlling zebra mussels in shallow-water habitats in lakes without significant long-term effects on water quality.

Funded in part by grant money from the U.S. Fish and Wildlife Service awarded by the Illinois Department of Natural Resources, the study was part of an effort to identify viable alternatives for treatment and control of invasive freshwater mussels in open water systems, such as lakes and reservoirs. This study, a collaborative effort between Southern Illinois University, the Forest Preserve District of DuPage County, and Marrone Bio Innovations, evaluated the results of applying Zequanox in Deep Quarry Lake, an infested lake in Illinois, during the summers of 2012 and 2013.

more »

Marrone Bio Innovations’ REGALIA® MAXX Biofungicide Receives Registration in Brazil

First Approved Plant Extract-Based Fungicide in Brazil Brings Growers New Solution for Protecting Against Disease, Resulting in Higher Quality and Yields

December 17, 2014, DAVIS, CA — Marrone Bio Innovations, Inc. (MBI), (NASDAQ: MBII), a leading provider of bio-based pest management and plant health products for the agriculture, turf and ornamental and water treatment markets, today announced that its REGALIA® MAXX Biofungicide has received a product registration from Brazil’s Ministry of Agriculture (MAPA). Brazil now joins Peru, El Salvador, Guatemala, Honduras, Panama, Columbia, the Dominican Republic and Mexico as Latin American countries having approved the use of REGALIA MAXX to control a wide variety of bacterial and fungal diseases across an array of agricultural crops.

REGALIA MAXX is the first plant extract-based fungicide approved in Brazil and is the first biopesticide with Induced Systemic Resistance (ISR), a complex mode of action which creates a defense response in the treated plants and stimulates additional biochemical pathways that strengthen the plant structure and act against the pathogen. The newly approved uses for REGALIA MAXX in Brazil, include tomatoes, potatoes, and dried beans.  MBI is working with its partner FMC to expand the label to include a broader array of crops and diseases, such as citrus and row crops.   more »

Guest Opinion: Biologicals Play Key Role in Food Production

THE GROWER, Vance Publishing Corporation
Written by Dr. Pamela Marrone, founder and chief executive officer of Marrone Bio Innovations, Davis, Calif.
12/04/2014

EDITOR’S NOTE: This is a guest column and opinions expressed here are only those of the author and do not necessarily reflect those of Vance Publishing Corporation.

Now more than ever, fruit and vegetable growers need effective and environmentally sustainable pest management programs to protect against crop diseases, improve food yields and quality, and feed a growing and increasingly food-conscious world.

Biopesticides or “biologicals” are becoming an important tool in the grower’s toolbox by promoting plant health and controlling unwanted pests and diseases, leading to better yields with reduced environmental impact – as well as an improved bottom line for growers.   more »

Marrone Bio Innovations Announces New Corporate Headquarters Location

December 2, 2014, DAVIS, CA — Marrone Bio Innovations, Inc. (MBI), (NASDAQ: MBII), a leading provider of bio-based pest management and plant health products for the agriculture, turf and ornamental and water treatment markets, today announced that it has relocated its corporate headquarters to 1540 Drew Avenue, Davis, CA 95618, effective December 8, 2014.   more »

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