Arcadia Biosciences (RKDA) Announces Strategic Review
July 20 2023 - 8:02AM
Business Wire
– Company will explore a range of potential
strategies to drive shareholder value –
Arcadia Biosciences, Inc.® (Nasdaq: RKDA), a producer and
marketer of innovative, plant-based health and wellness products,
today disclosed that it has initiated a process to explore a range
of potential transactions and alternative strategies focused on
maximizing long-term shareholder value.
As part of this process, the company will explore strategic
options that may include the potential for an acquisition, company
sale, merger, business combination, asset sale, joint venture,
licensing arrangement, capital raise or other strategic
transaction.
Lake Street Capital Markets, LLC, will act as Arcadia’s
financial advisor with respect to the strategic review process.
There can be no assurance that this exploration of strategic
alternatives will result in the company entering or completing any
transaction, and no timetable has been set for the conclusion of
the strategic review.
“This review is in line with Project Greenfield, our 3-year plan
to maximize the company’s potential and drive shareholder value,”
said Stan Jacot, Arcadia’s CEO. “We see this as an opportune time
to undertake these efforts after closing the second quarter of 2023
in an excellent cash position and streamlining our operating
expenses in anticipation of challenging economic headwinds.”
Business Update
As of June 30, 2023, Arcadia Biosciences had approximately $18.8
million in cash and cash equivalents. The company anticipates
second-quarter revenue in the range of $1.3 million - $1.5 million.
As part of the Project Greenfield strategy to focus resources on
high-opportunity, scalable businesses, Arcadia has made the
decision to streamline its operations and exit the remaining body
care brands, ProVault and SoulSpring, which the company expects to
result in annual operating expense savings of $3 million to $4
million starting in August 2023. Arcadia also recently announced an
expanded GoodWheat portfolio with the launch of GoodWheat pancake
mixes. Arcadia Biosciences expects to announce its second-quarter
financial results on August 10, 2023.
About Arcadia Biosciences, Inc.
Since 2002, Arcadia Biosciences has been innovating crops to
provide high-value, healthy ingredients to meet consumer demand for
healthier choices. With its roots in agricultural innovation,
Arcadia cultivates next-generation wellness products that make
everybody feel good, inside and out. The company’s food and
beverage products include GoodWheat™ and Zola® coconut water. For
more information, visit arcadiabio.com.
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 regarding the company’s reduction in
expenses from the streamlining of its operations and exiting
ProVault and SoulSpring, the company’s review and evaluation of
potential strategic alternatives and their impact on stockholder
value; the process by which the company engages in evaluation of
strategic transactions, the company’s ability to identify potential
buyers or partners for the company’s commercial products, the
company’s ability to identify potential sellers or merger or
acquisition partners, and the terms, timing, structure, benefits
and costs of any strategic transaction. 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. Factors that
could cause actual results to differ materially from management’s
current expectations include those risks and uncertainties relating
to: Arcadia’s ability to reduce costs from streamlining its
operations and exiting body care; the results of its strategic
review process; the company’s cash flow, cash burn, expenses,
obligations and liabilities; the interest of third parties in
entering into a merger, reverse merger, asset sale, partnership
arrangement or other strategic transaction with the company or in
purchasing one or more of its commercial products; any impact of
this evaluation process on the sale of the company’s commercial
products; and other important factors and risks discussed in the
company’s filings with the Securities and Exchange Commission,
including those risks set forth in Arcadia’s Annual Report on Form
10-K for the year ended December 31, 2022. These forward-looking
statements speak only as of the date hereof, and Arcadia
Biosciences, Inc. disclaims any obligation to update these
forward-looking statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20230720998849/en/
Investor Contact: T.J. Schaefer Chief Financial Officer
ir@arcadiabio.com
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