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Arcadia Biosciences closes registered direct offering that raised about $10 million

The agribiotech intends to use the money to acquire hemp germplasm, for breeding and research, and to scale-up its flagship GoodWheat's portfolio

Arcadia Biosciences Inc - Arcadia Biosciences closes on registered direct offering that raised about $10 million
Arcadia develops high-value food ingredients and nutritional oils that aim to meet the demand for healthier diets

Arcadia Biosciences Inc (NASDAQ:RKDA), the food-ingredient company, announced Tuesday that it has closed on a registered direct offering that raised about $10 million.

In a statement, the company said it sold 1.3 million shares at an on-the-market price of $7.52 each.

Additionally, in a concurrent private placement, Arcadia issued unregistered warrants to purchase up to 659,414 shares of common stock, representing 50% of the shares of common stock purchased in the direct offering. 

READ: Arcadia Biosciences forms hemp extraction joint venture with Legacy Ventures Hawaii

Each warrant was sold at a price of $0.125 per underlying share for gross proceeds of about $82,000. Each warrant has an exercise price of $7.52 per share, exercisable immediately, and will expire five and one-half years from the issuance date.

Arcadia said it intends to use the net proceeds for general corporate purposes and to pursue a range of near-term growth opportunities -- such as the acquisition of hemp germplasm, breeding and research, and a scale-up of its flagship GoodWheat portfolio of wheat flour products. 

"The proceeds of this financing, coupled with just over $5 million in cash we received from warrant exercises over the past week by investors from prior financings, meaningfully improves our cash position and better enables us to pursue a broad range of growth opportunities in the near term," said Arcadia CEO Matthew Plavan.

Arcadia, based in Davis, California, is an agricultural biotech company that 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 1.7% to $6.51 per share. 

Contact the author: patrick@proactiveinvestors.com

Follow him on Twitter @PatrickMGraham

Quick facts: Arcadia Biosciences Inc

Price: 3.07 USD

NASDAQ:RKDA
Market: NASDAQ
Market Cap: $32.85 m
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