Arcadia Biosciences Inc (NASDAQ: RKDA) is flying early on in the market today, and for good reason. The company announced that it has entered into a partnership, leading to excitement and sending the stock screaming for the top. Today, we’ll talk about:
- The partnership news;
- what we’re seeing from RKDA as a result; and
- what we’ll be watching for ahead.
RKDA Heads Up On Partnership
As mentioned above, Arcadia Biosciences is having an incredibly strong start to the trading session this morning after announcing that it has entered into a partnership. In a press release issued early this morning, the company announced that it has entered into a collaboration with Farmer’s Business Network (FBN Direct). Under the partnership, the two companies will work to expand the grower base of Arcadia’s family of special wheat varieties, known as GoodWheat™. As a result of the collaboration, FBN Direct inputs platform will have the ability to distribute identity-preserved GoodWheat seeds from RKDA to growers in its network. The goal is to increase farmer profitability over commodity wheat.
In the release, RKDA said that this agreement is a critical milestone in the development of its supply chain as well as its ability to scale its specialty wheat production to meet the demand anticipated following a commercial launch that will take place next year. The GoodWheat line is a non-transgenic portfolio of innovative wheat quality traits. Arcadia said that these traits include high fiber resistant starch, reduced gluten, and other benefits. In a statement, Raj Ketkar, President and CEO at RKDA, had the following to offer:
With their commitment to innovation and growing network of premier farmers, the FBN network is an ideal partner to help us build capacity for our specialty wheat varieties… Arcadia’s GoodWheat branded ingredients will provide consumers with healthier choices in their favorite foods, and the high demand for these premium products will enable improved economics for wheat growers.
The above statement was followed up by Amol Deshpande, CEO and co-founder of FBN. Here’s what he had to say about the collaboration with RKDA:
This important partnership with Arcadia provides our members access to grow specialty, identity-preserved GoodWheat and enables them to earn a premium over commodity wheat… Together, we are working to improve the economics of wheat production for farmers and bring wheat buyers a unique high-value crop.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In the case of Arcadia, the news proved to be overwhelmingly positive. After all, this new partnership will help the commercial launch of GoodWheat when the commercialization process comes in 2019. So, it’s no surprise to see that the stock is making a run for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (8:39), RKDA is trading at $9.84 per share after a gain of $2.03 per share (25.99%) 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 GoodWheat line and the partnership with regard to the product that was announced today. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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