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Arcadia Biosciences closes on $7.5 million registered direct offering

Investors purchased nearly 1.5 million shares of Arcadia’s common stock at $4.91 per share
Arcadia may use some of the money to get into the hemp germplasm (DNA of the hemp seed) space

Arcadia Biosciences Inc (Nasdaq:RKDA) announced Tuesday its has closed on a $7.5 million registered direct offering with several accredited and institutional investors.

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, investors purchased 1.49 million shares of Arcadia’s common stock at $4.91 per share for gross proceeds of about $7.31 million.

READ: Shares of Arcadia Biosciences jump after White House streamlines approval process of new GMO crops

Additionally, Arcadia issued unregistered warrants to purchase up to 1.49 million shares of common stock, representing all the shares of common stock purchased in the direct offering.

Each warrant was sold at a price of $0.125 per underlying warrant share for gross proceeds of nearly $190,000. Each warrant has an exercise price of $5 per share, is exercisable immediately and will expire five and a half years from the issue date.

Arcadia said the net proceeds of the offering are estimated to be about $6.9 million after deducting placement-agent fees and other expenses.

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 up 1.6% to $3.69 a share.

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