24/7 Market News Snapshot 05 December, 2024 – Arcadia Biosciences, Inc. (NASDAQ:RKDA)
DENVER, Colo., 05 December, 2024 (247marketnews.com) – (NASDAQ:RKDA) are discussed in this article.
Arcadia Biosciences, Inc. (RKDA) is positioning itself for significant growth following a definitive securities exchange agreement with Roosevelt Resources LP, a strategic move anticipated to create substantial shareholder value. This all-stock transaction, expected to close in the first quarter of 2025, will involve Arcadia issuing shares to Roosevelt’s equity partners in exchange for their interests, resulting in approximately 90% ownership for Roosevelt’s current stakeholders and 10% for Arcadia’s shareholders upon completion.
The excitement surrounding Arcadia is further underscored by its notable pre-market surge, with the stock price increasing to $7.48—an impressive leap of 177.46% from the previous close of $2.70. This surge is accompanied by a trading volume of 6.79 million shares, reflecting heightened investor interest as the market anticipates the company’s strategic realignment.
T.J. Schaefer, president and CEO of Arcadia, remarked that the agreement follows a comprehensive review that initiated in July 2023, resulting in streamlined operations and the strategic divestment of non-core assets. Schaefer emphasized the partnership with Roosevelt Resources as the most advantageous path to enhance shareholder returns, particularly as the company concentrates on its key product, Zola® coconut water.
With Roosevelt Resources under the guidance of industry veteran Elliott “Tony” Roosevelt, Jr., the collaboration is set to innovate oil and gas exploration while implementing advanced carbon capture techniques. The newly formed entity, to be branded as Roosevelt Resources, Inc., signifies a pivotal step in Arcadia’s evolution. The management anticipates that their combined expertise will foster operational efficiencies and optimized capital deployment, paving the way for future expansion. Investors are encouraged to engage further with the upcoming investor call scheduled for December 11, 2024, where additional insights will be shared.