On Thursday, February 28th, Arcadia Biosciences (NASDAQ:RKDA) announced that it is moving into the cannabis sector. On the news, the RKDA stock went flying in premarket trade (more than 50%). It also closed the trading day well into the green zone.
Here’s what we know.
Arcadia Biosciences and Cannabis: A New Found Friendship
Today, Arcadia Biosciences announced a new cannabis-focused business unit. It’s important to mention that the business will only operate in state and federal markets that have legalized cannabis activities. According to the Davis, California-based company, as stated by Market Watch, Arcadia Biosciences will use its “expertise in breeding to improve the quality and nutritional content of wheat and soybeans, for the standardization of cannabis plant content, quality, climate resiliency and yield.”
In simpler terms, the new unit—Arcadic Speciality Genomics—will create genetic improvements to cannabis crops, as well as hemp crops. CFO Matt Plavan will lead the unit, reports state.
Once the news hit the market, RKDA stock skyrocketed, causing it to become a Yahoo Finance trending ticker of the day. At market close, according to Yahoo Finance, RKDA stock closed the day trading at $8.05, which put it up 49.07%.
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Of course, it’s not surprising RKDA stock jumped as much as it did. The cannabis sector is a hot commodity, and good things are likely to come to anyone with a foot in the door. Chief Executive Raj Ketkar recognizes this. He said Arcadia Biosciences sees an “enormous opportunity in—and demand for—improved plant quality, productivity, consistency and resilience.”
For Those Who Don’t Know
Arcadia Biosciences is an agricultural biotechnology trait company, and it has built an extensive portfolio over the years. Working with various partners, Arcadia’s crop yield traits are utilized to create higher yielding seeds. The company operates in Canada, the United States, France, Belgium, India, and Africa.
Featured image: DepositPhotos © Fotofabrika
