Arcadia Biosciences, Inc. (Nasdaq: RKDA), a leader in science-based approaches to enhancing the quality and nutritional value of crops and food ingredients, has announced that it has entered into definitive agreements with several institutional and other accredited investors for the purchase of 7,876,784 shares of its common stock at a purchase price per share of $3.1925, in a private placement priced at-the-market under Nasdaq rules.
Additionally, Arcadia has also agreed to issue to the investors warrants to purchase up to 3,938,392 shares of common stock. The warrants to purchase 3,938,392 shares of common stock have an exercise price of $3.13 per share, will be immediately exercisable and will expire five and one-half years from the issue date. The closing of the offering is expected to occur on or about January 27, 2021, subject to the satisfaction of customary closing conditions.
The gross proceeds to Arcadia, before deducting placement agent fees and other offering expenses, are expected to be approximately $25.1 million. The potential gross proceeds from the exercise of the warrants, if fully exercised on a cash basis, will be approximately $12.3 million.
Arcadia intends to use the net proceeds from the offering for general corporate purposes, which include building its global GoodWheat family of consumer brands, development of its e-commerce, direct-to-consumer digital marketing infrastructure to launch its Three Farm Daughters branded pasta and flour products, and to fund its Archipelago Ventures Hawaiian hemp cultivation and mainland CBD extraction operations.
Arcadia is a leader in science-based approaches to enhancing the quality and nutritional value of crops and food ingredients. The company’s GoodHemp seed catalog delivers genetically superior hemp seeds, transplants and extracts, applying the company’s proprietary crop innovation technology, ArcaTech™.
At the end of 2020 Arcadia closed a transaction with Industrial Seed Innovations (ISI), an Oregon-based industrial hemp breeding and seed company, to acquire its commercial and genetic assets, including seed varieties, germplasm library and intellectual property. ISI’s popular Rogue and Umpqua seed varieties will become part of Arcadia’s portfolio, alongside the company’s GoodHemp line of genetically superior hemp seeds, transplants and extracts. The acquisition significantly broadens and accelerates commercialization of Arcadia’s hemp-related breeding platform and establishes a breeding research and development facility in the Pacific Northwest, a key hemp production area.
In the third quarter of 2020, revenues were $314,000, compared to revenues of $392,000 in the third quarter of 2019 and for the nine months ended September 30, 2020, revenues were $904,000, compared to $753,000 during the same period in 2019.
Source | Arcadia Biosciences