DAVIS, CALIFORNIA, US — Shares of Arcadia Biosciences, Inc. dropped 16% in early market trading on Jan. 25 following the announcement that the company has entered into definitive agreements with several institutional and other accredited investors for the purchase of 7,876,784 shares of its common stock at a purchase price per share of $3.1925.

Additionally, Arcadia has agreed to issue to the investors warrants to purchase up to 3,938,392 shares of common stock at an exercise price of $3.13 per share. The stock will be immediately exercisable and will expire five and one-half years from the issue date, Arcadia said.

In total, gross proceeds are expected to be approximately $25.1 million. The potential gross proceeds from the exercise of the warrants, if fully exercised on a cash basis, will be approximately $12.3 million.

Arcadia said it intends to use net proceeds from the offering for general corporate purposes, which include building its global GoodWheat family of consumer brands, development of its e-commerce, direct-to-consumer digital marketing infrastructure to launch its Three Farm Daughters branded pasta and flour products, and to fund its Archipelago Ventures Hawaiian hemp cultivation and mainland CBD extraction operations.

The closing of the offering is expected to occur on or about Jan. 27.