Arcadia Biosciences Inc (NASDAQ:RKDA) announced Monday that it has raised about $6.8 million by selling warrants.
In a statement, the agricultural technology company said it expects to use the net proceeds to pursue a range of near-term inorganic growth opportunities within its hemp business unit.
Arcadia said it also closed on the financing plan that allowed investors to exercise certain existing warrants to purchase 1,392,345 shares of common stock at a reduced price of $4.90 per share.
READ: Arcadia Biosciences turns profit, nearly doubles revenue in 1Q results
In consideration for the immediate exercise of the existing warrants for cash, the company noted that the exercising holders received new unregistered warrants to purchase up to an aggregate of 1,392,345 shares of common stock at a price of $4.775 per share with an exercise period of five years from the date of issuance.
"We saw this warrant exercise as an opportunity with our current investors to strengthen our balance sheet and to provide additional cash resources as we persevere through the headwinds of the COVID-19 pandemic," said CEO Matt Plavan.
"The proceeds of this financing will also help advance our strategy for growth and transform our business through the potential acquisition of assets aiming to add value and speed to our hemp and hemp products business."
Davis, California-based Arcadia focuses on three strategic crops: wheat, soybeans and hemp. The company's GoodWheat product line, which delivers nutritionally enhanced ingredients such as high fiber resistant starch and reduced gluten wheat varieties, recently made its commercial debut.
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