Business
Arcadia Biosciences Announces Plans to Acquire Oregon-Based Industrial Seed Innovations
-- Transaction will accelerate Arcadia's GoodHempTM breeding platform, expand seed portfolio and customer base, and establish new breeding station -- DAVIS,
About this update from Arcadia Biosciences, Inc.
[{"type":"text","content":"-- Transaction will accelerate Arcadia's GoodHempTM breeding platform, expand seed portfolio and customer base, and establish new breeding station --\n\n\n DAVIS, Calif., June 10, 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 it has entered into a binding term sheet with Industrial Seed Innovations (ISI), an Oregon-based industrial hemp breeding and seed company, to acquire its commercial and genetic assets, including its seed varieties, germplasm library and intellectual property.\n\n \n \n \n \n \n \n\n \n\"Industrial Seed Innovations brings tremendous talent, an impressive intellectual property and genetics portfolio and a solid and synergistic customer base to Arcadia,\" said Matthew Plavan, Arcadia's president and CEO. \"This transaction will strengthen our hemp breeding and seed production capabilities, augment and leverage our proprietary ArcaTechTM discovery platform and further position us as a leader in delivering high-value, premium hemp seeds.\"\nAccording to the term sheet, ISI's popular Rogue, Deschutes and Umpqua seed varieties will become part of Arcadia's portfolio, alongside the company's GoodHempTM line of genetically superior hemp seeds, transplants, flowers and extracts. The acquisition will significantly broaden and accelerate commercialization of Arcadia's hemp-related breeding platform, as well as establish a breeding research and development facility in the Pacific Northwest, a key hemp production area. With ISI's historically healthy gross margins, the acquisition is expected to be neutral to accretive to cash flow from operations in 2020 and meaningfully accretive to cash flows in 2021.\nPlavan continued, \"With the additional capital secured last month to underwrite our strategy to accelerate growth through the acquisition of assets, this transaction will add value and speed to our hemp and hemp products business, underscoring our ambitious plans for market leadership.\" \nThe transaction is expected to close in the third quarter of 2020. Financial details of the term sheet were not disclosed. The transaction remains subject to a number of conditions, including completion of due diligence, the receipt of any required consents and the negotiation of defini...