Business
Arcadia Biosciences (RKDA) Announces a Series of Strategic Transactions with Bioceres Crop Solutions (BIOX)
-- Arcadia receives a total of $8 million in up-front and contingent cash and 1.875 million BIOX shares -- -- Arcadia sells its interest in Verdeca to
About this update from Arcadia Biosciences, Inc.
[{"type":"text","content":"-- Arcadia receives a total of $8 million in up-front and contingent cash and 1.875 million BIOX shares --\n -- Arcadia sells its interest in Verdeca to Bioceres and will receive future trait royalties up to $10 million on HB4® soybean sales --\n -- Arcadia licenses GoodWheat™ to Bioceres in South and Central America and will receive future royalties on all GoodWheat sales --\n\n\nDAVIS, Calif., Nov. 12, 2020 /PRNewswire/ -- Arcadia Biosciences, Inc. (Nasdaq: RKDA) today announced a series of strategic transactions with Bioceres Crop Solutions Corp (NYSE: BIOX), including the sale of its membership interest in Verdeca, a soybean joint venture the two companies formed in 2012. In another transaction, Bioceres acquired license rights to Arcadia's GoodWheat™ technologies in South and Central America. \n\n \n \n \n \n \n \n\n \nUnder the terms of the agreement, Arcadia will receive $6 million in cash, including reimbursement of transaction related expenses and fees, with an additional $2 million in cash to be paid upon achievement by Verdeca of specific regulatory and commercial milestones. Arcadia also receives 1.875 million unregistered shares of BIOX common stock and a royalty stream up to $10 million on HB4® soybean sales.\n\"For more than a half-dozen years, we've successfully collaborated with Bioceres through our Verdeca joint venture to combine our capabilities in plant genomics, product development and global crop deregulation to bring the first drought tolerant, herbicide resistant product - HB4 soybeans – to market,\" said Matthew Plavan, president and CEO of Arcadia Biosciences. \"We believe it's time now to consolidate the commercial leadership of the HB4 program under Bioceres, with its strong reputation and footprint in South American agriculture, the primary target market for HB4 soybeans.\" \n\"Receiving a sizable stake in Bioceres and ongoing HB4 royalty revenue allows Arcadia to continue sharing in the HB4 opportunity, while the cash component of the transaction further strengthens our balance sheet,\" Plavan continued. \"At the same time, turning over the reins to our trusted partner to consolidate critical decision making and execution enables greater agility for forward commercialization of Verdeca's pipeline.\" \n\"Verdeca has been a truly successful venture between our two companies,\" said Federico Trucco, c...