Business
Arcadia Biosciences (RKDA) Announces $8.0 Million Registered Direct Offering Priced At-the-Market
-- Net proceeds to fuel GoodWheat™ direct-to-consumer, e-commerce and retail sales channel development -- DAVIS, Calif., Dec. 18, 2020 /PRNewswire/ -- Arcadia
About this update from Arcadia Biosciences, Inc.
[{"type":"text","content":"-- Net proceeds to fuel GoodWheat™ direct-to-consumer, e-commerce and retail sales channel development --\n\n\nDAVIS, Calif., Dec. 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 that it has entered into definitive agreements with several institutional and other accredited investors for the purchase of 2,618,658 shares of its common stock, at a purchase price per share of $3.055, in a registered direct offering priced at-the-market under Nasdaq rules. Additionally, Arcadia has also agreed to issue to the investors unregistered warrants to purchase up to 2,618,658 shares of common stock. The closing of the offering is expected to occur on or about December 22, 2020, subject to the satisfaction of customary closing conditions. \n\n \n \n \n \n \n \n\n \nThe warrants to purchase up to 2,618,658 shares of common stock have an exercise price of $3.00 per share, will be immediately exercisable, and will expire five and one-half years from the issue date.\nThe gross proceeds to Arcadia, before deducting placement agent fees and other offering expenses, are expected to be approximately $8.0 million. The potential gross proceeds from the exercise of the warrants, if fully exercised on a cash basis, will be approximately $7.86 million. No assurance can be given that any of the warrants will be exercised. Arcadia intends to use the net proceeds from the offering to fund GoodWheat customer acquisition costs Including digital marketing programs, brand and retail channel development and general corporate costs.\nH.C. Wainwright & Co. is acting as exclusive placement agent for the offering.\nThe shares of common stock described above (but not the warrants or the shares of common stock issuable upon exercise of the warrants) are being 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. Such shares of common stock may be offered only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. A prospectus supplement and the accompanying prospectus relating to the offering will be filed with the SEC. Electronic copies of the pr...