Business
Arcadia Biosciences Announces Cash Proceeds of $6.8 Million from Warrant Exercise
-- Net proceeds expected to fund strategic growth opportunities within the company's hemp business unit -- DAVIS, Calif., May 18, 2020 /PRNewswire/ -- Arcadia
About this update from Arcadia Biosciences, Inc.
[{"type":"text","content":"-- Net proceeds expected to fund strategic growth opportunities within the company's hemp business unit --\n\n\nDAVIS, Calif., May 18, 2020 /PRNewswire/ -- Arcadia Biosciences, Inc.® (Nasdaq: RKDA), a leader in science-based approaches to enhancing the quality and nutritional value of crops and food ingredients, today announced the closing of a transaction resulting in gross cash proceeds to the company of approximately $6.8 million, through the exercise of certain existing warrants by several holders to purchase an aggregate of 1,392,345 shares of common stock shares at a reduced exercise price of $4.90 per share. \n\n \n \n \n \n \n \n\n \nIn consideration for the immediate exercise of the existing warrants for cash, the exercising holders received new unregistered warrants to purchase up to an aggregate of 1,392,345 shares of common stock at an exercise price of $4.775 per share with an exercise period of five years from the date of issuance. The common shares issued upon exercise of the existing warrants are registered for resale pursuant to a registration statement on Form S-1 (File No. 333-229047). \nThe net proceeds of the offering are estimated to be approximately $6.3 million after deducting placement agent fees and other estimated offering expenses. Arcadia expects to use the net proceeds from this offering to pursue a range of near-term inorganic growth opportunities within the company's hemp business unit.\n\"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 Matt Plavan, president and CEO. \"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.\"\nH.C. Wainwright & Co. acted as the exclusive placement agent for the offering.\nThe new warrants described above were offered in a private placement pursuant to an applicable exemption from the registration requirements of the Securities Act and, along with the shares of common stock issuable upon the exercise thereof, have not been registered under the Securities Act, and may not be offered or sold in the United States absent registration with th...