Wednesday, March 4, 2015
YOLO COUNTY NEWS
99 CENTS

Marrone Bio launches internal investigation

By
From page A1 | September 05, 2014 |

MarronePam2013W

Pam Marrone, founder and CEO of Marrone Bio Innovations. Courtesy photo

Thirteen months after their initial public offering, Marrone Bio Innovations announced an internal investigation Wednesday after company management discovered a document that raised eyebrows about an $870,000 transaction in late 2013.

The Davis company is a global provider of bio-based pest management and plant health products.

The document was discovered about two weeks ago and reported to the company’s board of directors, said Pam Marrone, the CEO and founder. The board’s audit committee determined that filings for the company’s annual report and the unaudited 2014 quarterly reports can no longer be relied upon, and have brought in an independent law firm to conduct further investigations.

Investors immediately began trading after the news release, and MBI’s stock price tumbled 44 percent from $5.45 at opening on Wednesday to close at $3.15. The stock fell slightly on Thursday to $3.12.

“It’s obvious we’ve been inaugurated very brutally into the world of public companies,” Marrone said, but assured, “the company is very strong, the fundamentals are wonderful. We are not our stock prices.”

MBI went public last August, after a successful initial public offering raised $56 million in net proceeds. It was the Sacramento region’s first successful IPO in nearly a decade.

Marrone could not say whether this incident was a one-time occurrence, saying that would come out through the investigations. A number of law firms already have announced intentions to spearhead their own inquiries on behalf of investors, which could result in class-action lawsuits against the company in months to come.

News of the audit followed a tough second quarter, as MBI reported revenues plunging from $4.5 million in 2013 to $3.6 million in 2014. Company officials blamed the drop on adverse weather conditions in its growing regions.

MBI’s net loss for the second quarter was $10.4 million compared to $10.2 million in the first quarter of 2014.

But this year hasn’t been all bad news: The company officially opened its Michigan operating plant in July. In May, Marrone introduced Regalia Rx, a biofungicide, and launched Venerate, a bioinsecticide, in April.

In addition, the company’s chief operating officer, Hector Absi, left the company earlier this month. Marrone could not comment about whether his departure is related to the investigation, but said she is working to fill the marketing and sales positions that opened after his exit.

Comments

comments

Elizabeth Case

  • Recent Posts

  • Enter your email address to subscribe to this newspaper and receive notifications of new articles by email.

  • .

    News

    Guilty verdict in child abduction case

    By Anne Ternus-Bellamy | From Page: A1

     
    Davisite competing for breast cancer ‘Survivor of the Year’

    By Anne Ternus-Bellamy | From Page: A1 | Gallery

     
    Cool musicians, hot jazz at Coconut Grove fundraiser

    By Enterprise staff | From Page: A1 | Gallery

    DPNS offers open house Saturday

    By Enterprise staff | From Page: A3

     
    Public input sought Monday on Northstar Pond

    By Enterprise staff | From Page: A3 | Gallery

    Veggie gardening, composting are workshop topics

    By Enterprise staff | From Page: A3

     
    Documentary on immigration issues will be screened

    By Special to The Enterprise | From Page: A3

    Visiting prof will discuss Armenian genocide

    By Enterprise staff | From Page: A3

     
    Holmes plans open house Thursday

    By Enterprise staff | From Page: A3

    Nominees sought for Bill Streng Business Award

    By Enterprise staff | From Page: A3

     
    Museum brick sales to end this month

    By Enterprise staff | From Page: A3

    Prostate cancer group looks at massage

    By Special to The Enterprise | From Page: A3

     
    Moore featured at two climate talks this week

    By Enterprise staff | From Page: A3

    Talk breast cancer with oncologic surgeon

    By Enterprise staff | From Page: A3

     
    Applications due for Rotary’s leadership camp

    By Enterprise staff | From Page: A4

    Project Linus meets March 11

    By Enterprise staff | From Page: A4

     
    Closing education gap will lift economy, a study finds

    By New York Times News Service | From Page: A4 | Gallery

    Breakfast with the Bunny tickets on sale now

    By Enterprise staff | From Page: A5 | Gallery

     
    .

    Forum

    Story was an ad for NRA

    By Letters to the Editor | From Page: A6

     
    Athletes just want time to do their homework

    By Special to The Enterprise | From Page: A6

    Let’s not delete Giovanni Barovetto from Davis history

    By Rich Rifkin | From Page: A6 | Gallery

     
    Low-flow toilets in our parks?

    By Letters to the Editor | From Page: A6

    It was music to our ears

    By Letters to the Editor | From Page: A6

     
    Thanks for pet drive support

    By Letters to the Editor | From Page: A6

    .

    Sports

    DHS girls lacrosse coach likes her 2015 squad

    By Dylan Lee | From Page: B1 | Gallery

     
    Hawkins enters the home stretch of brilliant UCD career

    By Bruce Gallaudet | From Page: B1 | Gallery

    Blue Devils girls stay undefeated ahead of league opener

    By Evan Ream | From Page: B1 | Gallery

     
    Sports briefs: Blue Devils drop softball opener

    By Enterprise staff | From Page: B3

    Cousins returns to lift Kings in New York

    By The Associated Press | From Page: B3 | Gallery

     
    San Jose crushes Canucks behind Nieto

    By The Associated Press | From Page: B3

     
    .

    Features

    Ringing in the Year of the Sheep with dim sum

    By Ann Evans | From Page: A8 | Gallery

     
    .

    Arts

     
    French-Algerian guitarist weaves acoustic spells at The Palms on Friday March 6

    By Special to The Enterprise | From Page: A7 | Gallery

    California Honeydrops drop in for ‘Down Home’ tour

    By Landon Christensen | From Page: A7 | Gallery

     
    .

    Business

    .

    Obituaries

    Merna Petersen

    By Special to The Enterprise | From Page: A4

     
    .

    Comics

    Comics: Wednesday, March 4, 2015

    By Creator | From Page: B6