Arcadia Biosciences Inc (Nasdaq: RKDA), an agricultural engineering company, is orchestrating a direct offering priced at the market.

It has entered into definitive agreements with several institutional investors for the purchase of 1,392,345 shares of its common stock at a purchase price per share of US$9.93. The deal will result in gross proceeds of about US$13.83mln.

In the wake of the announcement, Arcadia shares fell 9% to US$9.12 in early afternoon trade.

Based in Davis, California, Arcadia is an agricultural technology company that uses genetic engineering to increase farmers’ crop yields.

Arcadia hopes to use the money raised from the offering to scale up its GoodWheat Resistant Starch wheat production as well as to pay for its more general business needs.

Arcadia also agreed to issue to its investors unregistered warrants to purchase up to 1,392,345 shares of common stock, at a purchase price per warrant of US$0.125 for gross proceeds of about US$0.17m.

The closing of its offering is set to take place on June 14 and the deal will be subject to the usual closing conditions.