Marrone Bio Innovations Announces Completion of $40 Million Loan Financing; Update on Management and NASDAQ Matters

Marrone Bio Innovations Announces Completion of $40 Million Loan Financing; Update on Management and NASDAQ Matters

DAVIS, Calif. – August 21, 2015 – Marrone Bio Innovations, Inc. (the “Company”), (NASDAQ: MBII), a leading provider of bio-based pest management and plant health products for the agriculture, turf and ornamental and water treatment markets, announced today that it has completed a $40 million loan financing.

The financing involves the Company’s issuance to the lenders of Senior Secured Promissory Notes in the aggregate principal amount of $40,000,000, accruing interest at a rate of 8% per annum, with $10 million payable 3 years from the closing, $10 million payable 4 years from the closing, and $20 million due 5 years from the closing. The Company also issued to the lenders warrants to purchase up to an aggregate of 4,000,000 shares of Common Stock at an exercise price equal to $1.91 per share (subject to certain limitations on exercisability). The Company currently intends to use the proceeds of the loan for working capital and other general corporate purposes.

Pam Marrone, Chief Executive Officer, said “We are grateful for the support of our lenders in recognizing the long term potential of the Company.”

The Company also announced that James Iademarco, the Company’s President and Chief Operating Officer since January 2015, has elected to resign effective August 31st, 2015. To assist with the transition of various pending matters, Mr. Iademarco has agreed to remain available to advise the Company in a consulting capacity for an additional period of up to 90 days. Elin Miller, Chairman of the Board, said “We very much appreciate James’ contributions to the Company, and we wish him the best in his future business endeavors.”

Mr. Iademarco added, “I am happy to have been able to assist the Company during a challenging period for the Company, and I am proud of our team members who have committed themselves to strengthening the Company’s business.”

The Company further announced that, as anticipated, it has received a letter from the Listing Qualifications Staff (the “Staff”) of The NASDAQ Stock Market LLC (“NASDAQ”) notifying the Company of its continued noncompliance with NASDAQ Listing Rule 5250(c)(1) as a result of the Company’s failure to timely file its Quarterly Report on Form 10-Q for the three months ended June 30, 2015 (the “Form 10-Q”) on August 15, 2015. As reported in the Company’s Notification of Late Filing on Form 12b-25 filed with the Securities and Exchange Commission (the “SEC”) on August 17, 2015, the Form 10-Q will not be filed with the SEC until after the completion of Company management’s evaluation of the necessity, nature and scope of any restatements to its previously filed financial statements. The Company currently expects that it will be able to file all delinquent reports, including the Form 10-Q, prior the November 9, 2015 expiration of the stay on suspension of trading granted by NASDAQ for the Company to regain compliance with NASDAQ’s filing requirement.

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 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 disclaim 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 release include those regarding the Company’s intended use of proceeds from the sale of notes and warrants in the financing, the Company’s financial statements, and expectations regarding the timing of the announcement of financial results or any restatements and regaining full compliance with the NASDAQ listing requirements. Such forward-looking statements are based on information available to the Company as of the date of this release and involve a number of risks and uncertainties, some beyond its control, that could cause actual results to differ materially from those anticipated by these forward-looking statements. Such risks include that the Company may not be successful in growing sales of its products and expects intense competition in its target markets, that the Company may need to raise additional capital to meet its business requirements in the future, and the Company may not be able to do so on reasonable terms or at all, uncertainty surrounding management’s evaluation of the nature and scope of any necessary restatements to its previously filed financial statements, the types of errors and adjustments that may be required in any such restatement, cooperation of the Company’s third party distributors, potential legal or regulatory action related to the matters under investigation, and adverse decisions by the SEC or NASDAQ. Additional information that could lead to material changes in the Company’s performance is contained in its filings with the SEC.

Media Contact:

Cory Ziskind
ICR
646-277-1232
Cory.Ziskind@icrinc.com

Michigan-made pesticide Zequanox adds muscle to war on zebra mussels

MLive.com
July 28, 2015
By Garret Ellison

 

The zebra mussel invasion is disrupting native ecosystems, damaging harbors and power plants, clogging pipes, propellers, water intakes and clustering on anything in their path.

In an article on Mlive, learn about how invasive species experts are expressing cautious optimism these days over the potential to fight back with Zequanox which targets zebra mussels and their equally unwelcome cousin, the quagga mussel, with a high mortality rate while leaving other organisms alive and unharmed.

Read more.

Biologicals: Filling the Gaps

By Dan Jacobs, July 23, 2015
farmchemicalsinternational.com

“Europe has reduced the number of chemicals on the market, eliminating hundreds of active ingredients, and passed the sustainable use directive, which requires farmers to use fewer chemicals,” says Pam Marrone, founder and CEO of Marrone Bio Innovations, a producer of several biological products. “Biologicals are the named alternative, but the regulatory process has not caught up with that. There’s a gap in the market with the reductions and restrictions on neonicotinoids and many other products. Europe is a very important market, but the regulatory process is still difficult.”

Read more.

PMRA Grants Emergency Use of Marrone Bio Innovations’ REGALIA® MAXX Biofungicide for Controlling Downy Mildew in Hops

DAVIS, CA – July 16, 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 Health Canada’s Pest Management Regulatory Agency approved the emergency use of REGALIA MAXX biofungicide for controlling downy mildew infections in hops. With the active support and leadership of Minor Use (Crop) Coordinators for the Provinces of Ontario and Quebec, MBI was able to secure this emergency approval from Health Canada’s Pest Management Regulatory Agency in time for the 2015 hop growing season.

“A downy mildew infection can cause significant yield losses and quality issues for hops growers,” said MBI CEO Pam Marrone. “We’re pleased to provide Canadian hops growers with an environmentally responsible and effective solution for controlling a difficult to manage disease. REGALIA MAXX was tested and proven to suppress downy mildew by Canada’s Integrated Crop Management Service and we’re pleased to see the results of those tests being applied to help Canadian farmers and North American brewers.”

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.

Regalia Maxx was previously approved by Health Canada’s Pest Management Regulatory Agency for outdoor and greenhouse use on a variety of fruits and vegetables and ornamentals, wheat, highbush blueberries, apples and turf. Regalia Maxx is also compliant with Canadian organic rules and is OMRI-Canada certified.

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 implementing our business strategy, expectations regarding our sales team and driving sales of our products. 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 our compliance with our financial reporting obligations. Additional information that could lead to material changes in our performance is contained in our filings with the Securities and Exchange Commission.
Media Contact:

Cory Ziskind
ICR
646-277-1232
Cory.Ziskind@icrinc.com

Webinar-Lessons learned from recent open-water applications and field trials of Zequanox®

Webinar: July 22, 2015 10:00-11:30am Eastern
Register now to reserve your spot!

Invasive zebra and quagga mussels (Dreissena polymorpha and D. rostriformis bugensis, respectively) are causing significant ecological and economic impacts across North America. Recent advances in biocontrol technology represent an exciting potential technique to manage invasive mussels; however, knowledge and understanding of control techniques and results is still limited. Please join us for a webinar hosted by the Invasive Mussel Collaborative to share lessons learned from open-water applications and field trials of Zequanox®. Managers and researchers will share their experiences with use of Zequanox®, including methods and results, and answer questions about their efforts. The webinar will feature presentations from representatives of the following agencies:

  • Michigan Department of Environmental Quality
  • Minnesota Department of Natural Resources
  • U.S. Geological Survey

Join the webinar hosted by the Invasive Mussel Collaborative to share lessons learned from open-water applications and field trials of Zequanox®.

Mighty Farming Microbes: Companies Harness Bacteria To Give Crops A Boost

What if farmers, instead of picking up some agricultural chemicals at their local dealer, picked up a load of agricultural microbes instead?

Pam Marrone, founder of Marrone Bio Innovations, in Davis, Calif., has been spent most of her professional life looking for such microbial pesticides and bringing them to market.

Listen to her interview on NPR’s program The Salt.

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