Arcadia Biosciences (RKDA) Announces $6.0 Million Private Placement Priced at a Premium to Market Under Nasdaq Rules
Arcadia Biosciences (Nasdaq: RKDA) announced a $6.0 million private placement of 666,334 shares of common stock at $9.00 per share, alongside Series A and Series B preferred investment options. The placement, expected to close by March 6, 2023, aims to fund Project Greenfield, a strategic plan designed to enhance profitability through expanding retail for products like GoodWheat™ high-fiber pasta and Zola coconut water. Additionally, the company will amend existing investment options to reduce their exercise price to $9.00 per share. An SEC registration statement for the resale of shares is targeted for filing by April 3, 2023.
- Successful private placement expected to raise approximately $6.0 million.
- Private placement priced at a premium to market, indicating strong demand and perceived value.
- Strategic focus on Project Greenfield to drive growth and profitability.
- Reduction of existing preferred investment options' exercise price to $9.00 enhances investment attractiveness.
- Current stock price lower than the $9.00 offering price, which may raise concerns about market perception.
- Potential dilution of shares due to the issuance of new shares and options.
Each share of common stock (or common stock equivalent) was sold in the private placement together with a Series A preferred investment option to purchase one share of common stock and a Series B preferred investment option to purchase one share of common stock. The Series A preferred investment options have an exercise price of
The aggregate gross proceeds to the company from the offering are expected to be approximately
The offering is expected to close on or about
Arcadia has also agreed to amend certain existing preferred investment options to purchase up to an aggregate of 178,132 shares of the company's common stock held by the investors that were previously issued in
The securities described above were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended and Regulation D promulgated thereunder and, along with the shares of common stock underlying the Series A preferred investment options and Series B preferred investment options, have not been registered under the Act or applicable state securities laws. Accordingly, the securities may not be offered or sold in
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About
With origins as a trailblazing developer of science-based approaches to enhancing the quality and nutritional value of crops and food ingredients,
Note Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the company's expectations regarding the completion of the private placement, satisfaction of closing conditions and use of proceeds therefrom. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, and reported results should not be considered as an indication of future performance. These risks and uncertainties include, without limitation, market and other conditions, the future capital requirements of the company are different than expected, the closing conditions related to the private placement are not satisfied and other risks set forth in the company's filings with the
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FAQ
What is the recent announcement by Arcadia Biosciences (RKDA) regarding stock placement?
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What are the key goals of Project Greenfield for Arcadia Biosciences?
What is the exercise price for the Series A and B preferred investment options in the recent offering?