DAVIS, CALIF. — Arcadia Biosciences, Inc. plans to use the net proceeds of a stock offering estimated at $7.3 million to fund GoodWheat customer acquisition costs, including digital marketing programs and retail channel development and general corporate costs.
The GoodWheat portfolio of wheats includes attributes such as higher fiber, fewer calories and reduced allergenicity.
“Firmly establishing our GoodWheat family of consumer brands, including Three Farm Daughters, and ensuring our digital marketing assets are properly built for scale is essential to the successful ramp up of our revenues in 2021,” said Matthew Plavan, president and chief executive officer of Davis-based Arcadia. “We believe the proceeds of this financing provide the capital to properly fund these efforts and better equip us to stay the course even amidst potential continued economic volatility in 2021.”
Three Farm Daughters, Grand Forks, ND, offers products like pasta and wheat flour that contain GoodWheat branded ingredients.
Arcadia on Dec. 22 reported it has closed on a previously announced registered direct offering of 2,618,658 shares of its common stock. Priced at $2.93 per share, the offering had gross proceeds of $7.7 million. Arcadia also in a concurrent private placement issued unregistered warrants to purchase up to 2,618,858 shares of common stock representing 100% of the shares of common stock purchased in the registered direct offering, leading to gross proceeds of about $327,000.
After deducting placement agent fees and other estimated offering expenses, Arcadia estimated the net proceeds at about $7.3 million.