Arcadia Biosciences, Inc. (NASDAQ:RKDA) Files An 8-K Other EventsItem 8.01.Other Events.
As previously disclosed in a Current Report on Form 8-K that Arcadia Biosciences, Inc. (the “Company”) filed with the Securities and Exchange Commission (“SEC”) on March 23, 2018, the Company entered into a securities purchase agreement on March 19, 2018 with certain institutional investors relating to the private placement (“Private Placement”) of shares of the Company’s common stock (“Common Stock”) and warrants to purchase Common Stock (“Warrants”).
As previously disclosed in the Company’s Quarterly Report on Form 10-Q that was filed with the SEC on May 9, 2018, the Company reported liabilities (“Financing Liabilities”) of $9.9 million and $6.0 million for the Warrants and Common Stock adjustment feature relating to the Private Placement. These were accounted for as liabilities at March 31, 2018 because the terms of the Warrants and the number of shares of Common Stock to be issued in the Private Placement were subject to adjustment at that time. The recording of these liabilities contributed to the Company reporting stockholders’ equity at March 31, 2018 of approximately $0.7 million, which is below the $2.5 million stockholders’ equity requirement under Listing Rule 5550(b)(1) of the Nasdaq Stock Market (“Minimum Stockholders’ Equity Requirement”).However, on May 7, 2018, following the Private Placement’s final adjustment, the terms of the Warrants and the number of Common Stock shares issuable in the Private Placement became known and fixed. As a result, the Company has reclassified the Financing Liabilities to stockholders’ equity, which increases the stockholders’ equity balance by $15.9 million and enables the Company to regain compliance with the Minimum Stockholders’ Equity Requirement.This increase will be reflected in the June 30, 2018 balance sheet to be included in the Company’s Quarterly Report on Form 10-Q for the quarter ending June 30, 2018.
About Arcadia Biosciences, Inc. (NASDAQ:RKDA)
Arcadia Biosciences, Inc. is an agricultural biotechnology trait company. The Company develops a portfolio of yield and traits addressing multiple crops that supply the global food and feed markets. It has a pipeline of products in development incorporating its traits, including products that are in advanced stages of development or on the market. Its crop yield traits are utilized by its partners to develop higher yielding seeds for global crops, including wheat, rice, soybean, corn, and sugarcane, as well as for other crops, such as cotton, turf and trees. The Company’s portfolio of agricultural productivity traits includes Nitrogen Use Efficiency (NUE), Water Use Efficiency (WUE), Drought Tolerance (DT), Salinity Tolerance (ST) and Herbicide Tolerance. It has presence in the United States, Africa, India, the United Arab Emirates, Belgium, France and Canada.
