Arcadia Biosciences Inc (NASDAQ: RKDA) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company announced that it has reached a key milestone in the development of Etended Shelf Life tomatos. Of course, the news proved to be a source of excitement for investors, sending the stock screaming for the top. Today, we’ll talk about:
- The milestone;
- what we’re seeing from RKDA as a result; and
- what we’ll be watching for ahead.
RKDA Achieves Key Milestone
As mentioned above, Arcadia Biosciences is having and overwhelmingly strong start to the trading session this mornign after the comapny announced that it achieved a key milestone. In a press release issued early this morning, the company announced the achievement of a key milestone in the development of Extended Shelf Life (ESL) tomatoes.
In the release, RKDA announced that bioseed has field tested the company’s ESL technology in multiple tomato hybrid backgrounds in multiple locations and seasons. The result proved to be significant and consistent improvements in field yield and fruit quality. These qualities included firmness, shelf life and color development. While the new hybrids are currently in pre-commercial field testing, it is expected that the launch of the product will take place in 2019.
In order to achieve these results, the company uses a non-GM advanced screening and breeding technique that’s known as TILLING. Through the use of TILLING, the company identifies genetic variations that allow fruits to fully ripen on the vine, yet remain durable enough to survive the packaging and shipping process. In a statement, Raj Ketkar, President and CEO at RKDA, had the following to offer:
These new varieties will reduce waste and spoilage in the production cycle while ensuring that the produce is fully ripe, better tasting, and still fresh when it reaches consumers… This development is a significant commercial milestone in advancing Arcadia’s ESL tomato technology that adds value throughout the tomato supply chain, from farm to consumers.
The above statement was followed up by Paresh Verma, President of Bioseed Southeast Asia and research director for Shriram Bioseed. Here’s what he had to offer:
This trait is especially valuable in a country like India where fresh market tomatoes are mostly field grown and post-harvest handling and logistics are challenging… Besides reducing post harvest losses, extended shelf life and improved field holding capacity of tomatoes will add tremendous value for farmers and other stakeholders in supply chain.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news causes moves. In the case of Arkadia, the news proved to be overwhelmingly positive. after all, this key milestone achievement is one step toward bringing the company’s ESL tomatoes to market. So, it’s no surprise that excited investors are sending the stock on a run for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:02), RKDA is trading at $8.23 per share after a gain of $1.35 per share or 19.62% 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 ESL tomatoes and excited to watch as the company works toward a commercial launch next year. Nonetheless, we’ll continue to follow the news closely and bring it to you as it breaks!
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