DALLAS - Arcadia Biosciences , Inc. (NASDAQ: NASDAQ:RKDA), known for its plant-based health and wellness products, has sold its GoodWheat brand to Above Food Corp. for a net amount of $4 million.
The transaction, announced today, is expected to expand the reach of Arcadia's wheat intellectual property (IP) through Above Food's vertically integrated supply chain.
GoodWheat, a brand under Arcadia since 2018, offers a range of wheat-based products such as pasta, pancake mixes, and mac & cheese, all made from proprietary non-GMO wheat grain. This grain is naturally higher in fiber and protein, aligning with consumer demand for healthier food options. The brand's products are currently available across over 3,500 retail locations nationwide and on Amazon (NASDAQ:AMZN).
Arcadia's president and CEO, Stan Jacot, views the sale as the start of a partnership that will scale the company's wheat IP. He stated that monetizing the IP through this deal allows Arcadia to focus on other crop licensing and royalty opportunities.
Above Food, with its field-to-fork approach, aims to meet the needs of health and quality-conscious consumers by using high-quality, non-GMO seeds. Lionel Kambeitz, CEO of Above Food, emphasized the importance of starting with premium grains to create better food products.
Lake Street Capital Markets acted as the exclusive financial advisor to Arcadia in this deal. This sale is part of a broader strategy by Arcadia to leverage its agricultural innovations to meet consumer demand for healthier choices, a mission it has pursued since its founding in 2002.
Both Arcadia and Above Food are optimistic about the future commercialization of Arcadia's wheat IP.
This news is based on a press release statement.
InvestingPro Insights
In light of Arcadia Biosciences' deal with Above Food Corp., investors may find the following metrics and tips from InvestingPro particularly insightful. The company's market capitalization is currently at $3.95 million, reflecting its position in the market. Despite the challenges faced over the past year, including a significant revenue decline of 35.08% in the last twelve months as of Q1 2024, Arcadia's recent transaction could suggest a strategic pivot to strengthen its financial standing and focus on its core competencies.
Two notable InvestingPro Tips for RKDA include the company holding more cash than debt on its balance sheet and trading at a low Price / Book multiple of 0.37 as of Q1 2024. These factors could indicate an underlying financial resilience and a potentially undervalued stock, which might be of interest to value investors. Moreover, the Price / Book multiple can be a useful metric for assessing whether a company's market value is justified by its book value, especially for a company like Arcadia that is looking to capitalize on its intellectual property.
Investors should also consider that Arcadia Biosciences does not pay a dividend to shareholders, which is common for companies that are focusing on growth or in a turnaround phase. Additionally, the company's significant return over the last month, with a 1 Month Price Total Return of 51.04%, could reflect market optimism following the announcement of the sale of the GoodWheat brand.
For those interested in a deeper dive into Arcadia Biosciences' prospects and performance, InvestingPro offers additional insights. There are 12 more InvestingPro Tips available for RKDA at https://www.investing.com/pro/RKDA. To access these tips and more detailed analytics, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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