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Arcadia Biosciences Announces Warrant Exercise Transaction to Generate $2.5 Million in Gross Proceeds
-- Net proceeds to fund scale up of HB4® soybean inventories -- DAVIS, Calif., July 6, 2020 /PRNewswire/ -- Arcadia Biosciences, Inc.® (Nasdaq: RKDA), a
About this update from Arcadia Biosciences, Inc.
[{"type":"text","content":"-- Net proceeds to fund scale up of HB4® soybean inventories --\n\n\nDAVIS, Calif., July 6, 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 that it has entered into a definitive agreement with an institutional investor for the exercise of certain existing warrants to purchase up to an aggregate of 641,416 shares of common stock at a reduced exercise price of $3.975 per share. Additionally, Arcadia has agreed to issue to the investor new unregistered warrants to purchase up to an aggregate of 641,416 shares of common stock shares at an exercise price of $3.85 per share and with an exercise period of five and one-half years from the date of issuance. The closing of the transaction is expected to occur on or about July 8, 2020, subject to the satisfaction of customary closing conditions.\n\n \n \n \n \n \n \n\n \nThe common shares issuable upon the exercise of the existing warrants are registered for resale pursuant to an effective registration statement on Form S-3 (File No. 333-224061). The gross proceeds to Arcadia, before deducting placement agent fees and other offering expenses, are expected to be approximately $2.5 million. \nThrough Verdeca, a joint venture between Arcadia Biosciences Inc. and Bioceres Crop Solutions Corp. (NYSE American: BIOX), Arcadia intends to use proceeds from the warrant exercise to support the launch of Verdeca's HB4® soybean, a drought tolerant, herbicide resistant seed solution available for soybean.\n\"The exercise of these warrants by our current investor provides necessary funding to begin expanding our HB4 acreage to potentially hundreds of thousands over the next crop cycle in anticipation of launch,\" said Matt Plavan, Arcadia president and CEO. \"Through Verdeca, we are also increasing our investment in breeding and new market development activities to access incremental geographies including Brazil and the U.S., as well as preparing for eventual approval in China.\"\nH.C. Wainwright & Co. is acting as 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 of 1933, as amended (1933 Act) and, along ...