RKDA Stock Edges Lower After Company Receives Merger Termination Notice From Roosevelt Resources

• Arcadia CEO TJ Schaefer stated that, following the termination of the merger agreement, the company will resume evaluating its strategic alternatives to create value for shareholders.
• Schaefer added that the company owns 2.7 million shares of Above Food Ingredients.
• He also stated that Arcadia is entitled to additional compensation and consideration for the sale of its GoodWheat brand to Above Food.

Arcadia Biosciences Inc. (RKDA) shares rose more than 7% in Friday’s pre-market trade before losing all the gains and hovering 1% lower. This is after the company announced that it had received a merger termination notice from Roosevelt Resources.

Arcadia and Roosevelt had entered into a business combination agreement in December 2024 in the form of an all-stock transaction.

Retail sentiment on Stocktwits around Arcadia Biosciences trended in the ‘neutral’ territory at the time of writing.

Resuming Evaluation Of Strategic Alternatives

Arcadia CEO TJ Schaefer stated that, following the termination of the merger agreement, the company will resume evaluating its strategic alternatives to create value for shareholders.

“Over the last two-and-a-half years, we have streamlined our operations, significantly reduced our operating expenses and grown the Zola coconut water brand while avoiding the use of long-term debt,” he said.

Schaefer added that the company owns 2.7 million shares of Above Food Ingredients. He also stated that Arcadia is entitled to additional compensation and consideration for the sale of its GoodWheat brand to Above Food.

Arcadia sold the GoodWheat brand to Above Food for $4 million in May 2024.

Following the merger announcement with Roosevelt in 2024, Arcadia stated that the new entity would be named Roosevelt Resources Inc., with the company listing under a new symbol.

Arcadia’s shareholders would own 10% of the new entity, while Roosevelt shareholders would own the remaining 90%, the company stated while announcing the merger in 2024.

What Does Arcadia Do?

Arcadia Biosciences is a California-based agricultural biotechnology company that focuses on developing crop traits to enhance their quality and productivity.

Founded in 2002, the company has developed soybean varieties carrying the drought-tolerant HB4 trait in a joint venture with Bioceres Crop Solutions Corp. (BIOX).

RKDA stock is down 49% year-to-date and 51% over the past 12 months.

Also See: Treasury Yields Hold Steady As Wall Street Braces For ‘Considerably Slower’ Q4 GDP

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