Arcadia Biosciences Inc (NASDAQ: RKDA) is having an incredibly strong start to the trading session in the pre-market hours this morning, and for good reason. The company announced that it would be launching a business division dedicated to cannabis.
With all of the investor interest in the cannabis space at the moment, it’s not surprising to see that this news is exciting investors. Today, we’ll talk about:
- The news;
- what we’re seeing from RKDA stock as a result; and
- what we’ll be watching for ahead.
RKDA Announces Cannabis Business Unit
As mentioned above, Arcadia Biosciences is having an incredibly strong start to the trading session this morning after announcing the launch of a new business unit. The news came early this morning via press release.
In the release, the company said that it plans on applying its expertise to a new crop. That crop being cannabis. RKDA said that it has established Arcadia Specialty Genomics. The new unit is the first of its kind, dedicated to plant content, quality, climate, resiliency and yield.
In the release, the company said that it plans on conducting business in federal and state markets in which cannabis and its activities are legal. With a fifteen-year track record of bring beneficial crop traits to market, the company believes that it can do the same for the cannabis space.
In a statement, Raj Ketkar, President and CEO at RKDA, had the following to offer:
Within the rapidly growing legal cannabis industry, we see enormous opportunity in – and demand for – improved plant quality, productivity, consistency and resilience. With this new operating unit, Arcadia Specialty Genomics, we are uniquely qualified as a proven crop improvement company equipped to address the legacy challenges facing a plant that until recently was largely grown unlawfully.
I can think of no one better than Matt Plavan, an industry veteran with a track record of leading transformational market pivots, to lead our new strategic business unit.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to Arkadia Biosciences, the news proved to be overwhelmingly positive.
After all, investor interest in the cannabis sector is heavy at the moment. With proven ability to improve traits in crops, there’s no reason that the company couldn’t do this in the cannabis space. So, the fact that they are moving into it is sending the stock for the top.
As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:50), RKDA is trading at $8.09 per share after a gain of $2.69 per share or 29.81% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on RKDA. In particular, we’re interested in following the story surrounding the company’s continued work to expand into the cannabis space. Nonetheless, we’ll keep an eye on the news and bring it to you as it breaks!
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