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Arcadia Biosciences announces financing plan to raise up to $8M to fund GoodWheat customer acquisition costs

The California company has entered into definitive agreements with several institutional and other accredited investors to buy 2,618,658 shares at $3.055 each in a registered direct offering priced at-the-market

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Also, Arcadia has agreed to issue to investors unregistered warrants to purchase up to 2,618,658 shares of stock with an exercise price of $3 per share

Arcadia Biosciences Inc (NASDAQ:RKDA) announced Friday a financing plan to raise up to $8 million to fund GoodWheat customer acquisition costs. 

The company said it has entered into definitive agreements with several institutional and other accredited investors to buy 2,618,658 shares at $3.055 each in a registered direct offering priced at-the-market under Nasdaq rules. 

Additionally, Arcadia said it has agreed to issue to the investors unregistered warrants to purchase up to 2,618,658 shares of common stock with an exercise price of $3 per share that is immediately exercisable and will expire five and one-half years from the issue date.

READ: Arcadia Biosciences inks distribution deal with Tritium 3H for GoodHemp seeds in Canada

The Davis, California-based company said the potential gross proceeds from the exercise of the warrants, if fully exercised on a cash basis, would be about $7.86 million. No assurance can be given that any of the warrants will be exercised. 

Arcadia said the GoodWheat customer acquisition costs including digital marketing programs, brand and retail channel development, and general corporate expenses.

GoodWheat is Arcadia’s portfolio of wheat flour ingredients, which offers healthier enriched and whole-grain wheat options while providing the same baking quality, taste, and texture as traditional wheat with a longer shelf life. 

The closing is expected to occur on or about December 22, subject to the satisfaction of customary closing conditions.

Contact the author: patrick@proactiveinvestors.com

Follow him on Twitter @PatrickMGraham

Quick facts: Arcadia Biosciences Inc

Price: 2.69 USD

NASDAQ:RKDA
Market: NASDAQ
Market Cap: $57.37 m
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