The agricultural biotech company said it will use the capital for general corporate purposes, including a hemp germplasm (DNA of the hemp seed) acquisition, breeding and research activities, the scale-up of its GoodWheatTM product, and for general and administrative expenses.
Under the offering priced at-the-market that’s expected to close on Friday, investors will purchase of 1,489,575 shares of Arcadia’s common stock at $5.035 per share, according to a statement.
READ: Shares of Arcadia Biosciences jump after White House streamlines approval process of new GMO crops
Additionally, Arcadia has also agreed to issue to the investors unregistered warrants to purchase up to 1,489,575 shares of common stock at an immediately exercisable price of $5 per share. The warrants will expire five and a half years from the issue date.
Arcadia, based in Davis, California, develops high-value food ingredients and nutritional oils that aim to meet the demand for healthier diets. It also produces a GMO soybean.
The company’s stock recently traded down 33% to $3.95 a share following the company’s announcement.
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