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  • Arcadia Biosciences (RKDA) Pre-Market Rally Linked To A Merger

    Arcadia Biosciences (RKDA) Pre-Market Rally Linked To A Merger

    The stock price of Arcadia Biosciences, Inc. (NASDAQ: RKDA) had a sharp increase during the pre-market trading session, increasing 153.74% to $7.13. The rise comes after Roosevelt Resources LP and the company announced a final securities exchange agreement.

    Arcadia will issue common stock to Roosevelt’s partners in return for all equity interests in Roosevelt as part of the all-stock deal, which will combine the two businesses. Subject to certain changes, it is anticipated that Roosevelt’s equity owners would own 90% of the merged business after the acquisition, leaving Arcadia’s shareholders with a 10% holding.

    Strategic Review Leads to Pivotal Decision

    Arcadia has been undergoing a comprehensive strategy review to increase shareholder value since July 2023. By focusing on Zola coconut water, reducing operational expenses, and obtaining non-dilutive financing through the sale of its GoodWheat brand and wheat intellectual property, the firm simplified its operations. After months of evaluation with external advisors, the merger with Roosevelt Resources emerged as the optimal route for growth and value creation.

    Roosevelt Resources: A Promising Partner in Energy Development

    Roosevelt Resources, a privately held company based in Dallas, Texas, specializes in exploration and production with a focus on carbon capture, utilization, and storage (CCUS) in oil and gas projects. Led by seasoned industry expert Elliott “Tony” Roosevelt, Jr., the company holds a 16,208-acre project on the Northwest Shelf of the Texas Permian Basin. This enhanced oil recovery (EOR) initiative is expected to achieve peak production of 55,000 barrels of oil equivalent per day by 2051, ensuring decades of sustained development.

    Future Directions and Leadership Transition

    Upon the transaction’s completion, Arcadia will rebrand as Roosevelt Resources, Inc., subject to Nasdaq’s approval of continued listing under a new trading symbol. Roosevelt’s current leadership team will helm the combined entity, with Tony Roosevelt as CEO, Jimmy Hawkins as President and COO, and Jerrel Branson as CFO. Select members of Arcadia’s team may continue to oversee ongoing operations, supporting a seamless transition.

    This merger signifies a strategic pivot, aligning Arcadia with a high-growth energy sector and establishing a robust foundation for future success.

  • Arcadia Biosciences Inc. (RKDA) Nosedives After Hours on Quarterly Results

    Arcadia Biosciences Inc. (RKDA) Nosedives After Hours on Quarterly Results

    The ever-growing agriculture biotechnology industry while having some conflicting thoughts from a few is essential to our future. With the inevitable decline in resources and increase in pollution, climates change, and the likes, it is becoming of utmost importance to develop greens that will endure. Many agriculture biotechnology companies are experimenting with developing crops and foods with higher yields and fewer requirements. One such company focused on developing agricultural products for environmental improvement and human health is Arcadia Biosciences Inc. (RKDA).

    RKDA Stock Price

    The $42.82 million market cap company has had a fruitful year so far with year-to-date gains amounting to more than 80%. Comparatively, the stock saw a rough period last year with a decline of more than 30%.

    At present, RKDA currently values at $1.39 per share as per the after-hours trading of March 30, 2022. The late trading session culminated in a loss of 26.46% for the stock stemming from the company’s latest financial report. The company declared its year-end and Q4 2021 results on Wednesday after the bell.

    In the earlier trading session, the stock went down by 2.07% to value at $1.89 per share. Thus speaking for the investors fear over the earnings report even before its release.

    Latest Financial Report

    Source: Forbes

    The company’s 2021 and fourth quarter revenues both suffered a decline, with Q4 revenue standing at $2.2 million. The comparable Q4 2020 revenues were $7.1 million.

    While the company’s R&D expenditure witnessed a decline, the SG&A expenses, cost of products, and operating expenses all increased in the quarter. Thus, the reported values were $16.0 million in operating expenses, $3.8 million in costs of products, $6.2 million in SG&A expenses. The R&D spending was $561,000 in the quarter.

    Subsequently, the company’s income reversed to a net loss in the quarter against the year-ago period. Net loss with a reported value of $9.3 million amounted to a loss of $0.42 per basic and diluted share. Comparatively, RKDA had an income of $8.9 million in Q4 2020.

    With not much growth from RKDA’s GoodWheat and wellness products, the company expects growth from them in 2022.

    RKDA’s New CEO

    As per the company’s recent announcement, RKDA has hired Stan Jacot, a food and brand marketing veteran as its new CEO. Previously the president of Jane’s Dough Foods, Mr. Jacot became the company’s CEO on February 2, 2022. Earlier, the company’s chairman board, Kevin Comcowich had stepped in as interim CEO.