Arcadia Biosciences Inc (NASDAQ:RKDA) said Monday it has entered into a warrant-exercise agreement with an institutional investor to raise $2.5 million.
Through Verdeca, a joint venture between the company and Bioceres Crop Solutions Corp (NYSEAMERICAN: BIOX), Arcadia BioSciences said it intends to use proceeds from the warrant exercise to support the launch of Verdeca's HB4 soybean, a drought-tolerant, herbicide-resistant seed solution available for soybean.
Under the agreement, the institutional investor will exercise certain existing warrants to purchase up to an aggregate of 641,416 shares of common stock at a reduced price of $3.975 per share.
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Additionally, California-based Arcadia Biosciences said it has agreed to issue to the investor new unregistered warrants to purchase up to an aggregate of 641,416 shares of common shares at $3.85 each and with an exercise period of five and one-half years from the date of issuance.
The closing of the transaction is expected to occur on or about July 8, subject to the satisfaction of customary closing conditions.
"The exercise of these warrants by our current investor provides necessary funding to begin expanding our HB4 acreage to potentially hundreds of thousands over the next crop cycle in anticipation of launch," said Arcadia Biosciences CEO Matt Plavan.
"Through Verdeca, we are also increasing our investment in breeding and new market development activities to access incremental geographies including Brazil and the US, as well as preparing for eventual approval in China."
HC Wainwright & Co is acting as exclusive placement agent for the offering.
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