Arcadia Biosciences Inc (NASDAQ:RKDA) has closed its previously announced $7.7 million registered direct offering, the company announced Tuesday, which it plans to put toward GoodWheat digital marketing programs, brand and retail channel development.
The offering of 2.6 million shares was priced at-the-market at $2.93 per share. Additionally, the company issued 2.6 million share purchase warrants in a concurrent private placement. The warrants were sold for $0.13 and have an exercise price of $3, fetching gross proceeds of $327,000.
"Firmly establishing our GoodWheat family of consumer brands, including Three Farm Daughters, and ensuring our digital marketing assets are properly built for scale is essential to the successful ramp up of our revenues in 2021," CEO Matthew Plavan said in a statement.
READ: Arcadia Biosciences announces financing plan to raise up to $8M to fund GoodWheat customer acquisition costs
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.
"We believe the proceeds of this financing provide the capital to properly fund these efforts and better equip us to stay the course even amidst potential continued economic volatility in 2021,” Plavan added.
HC Wainwright & Co acted as the exclusive placement agent for the offering. After placement agent fees and other estimated offering expenses, net proceeds are expected to be $7.3 million.
Contact Andrew Kessel at firstname.lastname@example.org
Follow him on Twitter @andrew_kessel