Ag biotech firm raises $6.8 million to fund hemp division

A publicly traded agricultural technology company announced Monday that it has raised $6.8 million through warrants to fund new opportunities within its hemp division.

Arcadia Biosciences, based in Davis, California, gave investors the chance to exercise existing warrants to purchase nearly 1.4 million shares of common stock at a reduced price of $4.90 per share. Net proceeds from the offering are estimated at approximately $6.3 million.

Existing stockholders also received new, unregistered warrants to purchase up to a combined 1,392,345 shares of common stock at $4.77 per share within five years.

The company will use the proceeds to strengthen its balance sheet during the coronavirus pandemic, while pursuing a range of growth opportunities within its Good Hemp business unit. Executives did not elaborate.

“The proceeds of this financing will also help advance our strategy for growth and transform our business through the potential acquisition of assets aiming to add value and speed to our hemp and hemp products business,” said Matt Plavan, Arcadia Biosciences president and CEO in a company statement.

Arcadia Biosciences, a biotechnology company strategically focused on wheat, soybeans and hemp, got its start in hemp by producing the crop in Hawaii and launching its Good Hemp division in 2019.

The company recently developed strategic partnerships with California-based agricultural companies Grow West and Buttonwillow Warehouse Co. to sell and distribute its proprietary hempseeds to California farmers.

Arcadia Biosciences trades on the Nasdaq as RKDA.