Arcadia Biosciences Inc (NASDAQ: RKDA) is having an incredibly strong start to the trading session this morning, and for good reason. The company announced that it has received its first hemp-related license.
As you could imagine, the news excited investors, pushing the stock for the top. Today, we’ll talk about:
- The hemp license news;
- what we’re seeing from RKDA stock as a result; and
- what we’ll be watching for ahead.
RKDA Announces Hemp License
As mentioned above, Arcadia Biosciences is having an incredibly strong start to the trading session this morning after the company announced that it has received its first hemp license. In a press release issued early this morning, the company announced that it has been granted an Industrial Hemp Pilot Program License.
The license was provided by Hawaii’s Department of Agriculture and will allow RKDA to cultivate industrial hemp in Hawaii for the purposes of agricultural and academic research. RKDA said that products produced under the program may also be commercially sold.
As a result of the license, Hawaii will be the first state where Arcadia Specialty Genomics will commence research and cultivate hemp. The company plans on planting its hemp on 10 acres of recently-leased land as soon as next month.
In a statement, Matt Plavan, CFO at RKDA and President of Arcadia Specialty Genomics, had the following to offer:
Industrial hemp, along with all strains of cannabis, are decades behind other agricultural crops in terms of improved plant genetics. With the explosive market growth projected in the industrial hemp and derivative markets, growers will need the very best hemp strains to meet demand, minimize waste, and ensure consistent quality. As the only company working in the cannabis industry with proven track record of improving plants and commercializing food ingredients from agricultural products using non-GM techniques, we’re ideally positioned to help hemp growers and end-users benefit from better hemp strains. Being licensed by the State of Hawaii to participate in this highly selective program gives us an important head start and we’re moving quickly to establish our Hawaii research program immediately as we pursue expansion through licenses in other states.
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 RKDA, the news proved to be overwhelmingly positive.
The company just recently announced the formation of Arcadia Specialty Genomics as an entrance into the hemp and CBD space. Now, about a week later, we hear that the company has ALREADY received licensing to start producing hemp commercially.
Considering this, it’s not surprising to see that investors are excitedly sending the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:49), RKDA is trading at $9.15 per share after a gain of $1.94 per share or 26.91% 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 hemp and CBD space as it is making big moves early on. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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