Business
Arcadia Biosciences Announces Closing of $10 Million Registered Direct Offering Priced At-the-Market
DAVIS, Calif., Sept. 10, 2019 /PRNewswire/ -- Arcadia Biosciences, Inc. (Nasdaq: RKDA), a food ingredient company and proven leader in agricultural
About this update from Arcadia Biosciences, Inc.
[{"type":"text","content":"DAVIS, Calif., Sept. 10, 2019 /PRNewswire/ -- Arcadia Biosciences, Inc. (Nasdaq: RKDA), a food ingredient company and proven leader in agricultural innovation, improving the quality and nutritional content of crops, today announced the closing of its previously announced registered direct offering of 1,318,828 shares of its common stock. The offering was priced at-the-market at a purchase price per share of $7.52, for gross proceeds of approximately $9.92 million. Additionally, in a concurrent private placement, Arcadia issued unregistered warrants to purchase up to 659,414 shares of common stock, representing 50 percent of the shares of common stock purchased in the registered direct offering. Each warrant was sold at a price of $0.125 per underlying warrant share for gross proceeds of approximately $82,000. Each warrant has an exercise price of $7.52 per share, is exercisable immediately and will expire five and one-half years from the issuance date.\n\n \nThe net proceeds of the offering are estimated to be approximately $9.2 million after deducting placement agent fees and other estimated offering expenses. Arcadia intends to use the net proceeds from this offering for general corporate purposes and to pursue a range of near-term growth opportunities, including, but not limited to, hemp germplasm acquisition, breeding and research activities, the scale-up of GoodWheatTM and general and administrative expenses.\n\"We are pleased to have raised $10 million in a financing priced at-the-market today,\" said Matthew Plavan, president and CEO of Arcadia. \"The proceeds of this financing, coupled with just over $5 million in cash we received from warrant exercises over the past week by investors from prior financings, meaningfully improves our cash position and better enables us to pursue a broad range of growth opportunities in the near term.\"\nH.C. Wainwright & Co. acted as the exclusive placement agent for the offering.\nThe shares of common stock described above (but not the warrants or the shares of common stock underlying the warrants) were offered pursuant to a \"shelf\" registration statement (File 333-224893) filed with the Securities and Exchange Commission (SEC) and declared effective on June 8, 2018. The offering of such shares of common stock was made by means of a prospectus, including a prospectus supplement, fo...