RKDA - Arcadia Biosciences stock jumps as company explores possible sale

2023-07-20 13:02:46 ET

Arcadia Biosciences ( NASDAQ: RKDA ) stock was trading 6% higher midday Thursday after it said it was exploring various strategic options, including a possible sale of the company.

Arcadia, which specializes in plant-based wellness products, said that it would be reviewing possible transactions and strategies aimed at enhancing shareholder value, including a possible sale, merger, acquisition, joint venture, licensing deal or capital raise. Lake Street Capital Markets is serving as the company's financial advisor.

The company said it is also streamlining operating expenses "in anticipation of challenging economic headwinds." As a result, the company plans to exit its remaining bodycare brands, ProVault and SoulSpring.

The company added that it is in an "excellent" cash position, with around $18.8M in cash and equivalents at the end of June 30.

Quarterly revenue is now expected to fall short of Street estimates, however. Arcadia said it now sees Q2 revenue in the range of $1.3M to $1.5M. Analysts had been looking for $1.8M.

Arcadia is expected to release its Q2 earnings report on Aug. 10.  Wall Street analysts currently have a strong buy rating on the stock, on average. The stock's SA Quant rating, however, is a strong sell.

More on Arcadia:

Arcadia Biosciences, Inc. ( RKDA ) Q1 2023 Earnings Call Transcript

Arcadia Biosciences reports Q1 results

Arcadia Biosciences Q1 Earnings Preview

For further details see: