Arcadia Biosciences Inc (NASDAQ:RKDA) said Wednesday it has achieved several highlights and is looking forward to a number of milestones ahead for its product lines. The company is rapidly advancing its cannabis business, while also pushing forward the first sales of its GoodWheat product and HB4 drought-tolerant soybeans.
The Davis, California-based company recently launched a unit, Arcadia Specialty Genomics, to focus on the genetic improvement of cannabis as well as other crops. Arcadia’s chief financial officer Matt Plavan has been appointed president of this new business. The unit is dedicated to improving the plant quality, productivity, consistency and climate resilience of cannabis, initially in hemp.
“With the launch of Arcadia Specialty Genomics in the first quarter of 2019 and research trials already underway, we are now leveraging our years of expertise in plant science, advanced breeding and regulatory affairs to offer value-added innovations in cannabis,” said Raj Ketkar, president and CEO of Arcadia in a statement.
“We also advanced both our GoodWheat specialty ingredients and HB4 drought-tolerant soybeans this quarter, scaling production and building seed supply to support commercialization later in 2019,” he added.
Arcadia, which is transitioning to a new health and nutrition business model, also reported good news from Hawaii in 1Q, where Hawaii’s Department of Agriculture granted Arcadia Biosciences a license for its Industrial Hemp Pilot Program in March. With the licence, Arcadia Specialty Genomics began its research and cultivation immediately, planting in April.
GoodWheat production moves forward
The firm also reported progress as it completed its GoodWheat production trials in the first quarter, with harvest early in the second quarter. The company's agrricultural operations team continues to build supply in preparation for commercialization. The first sales of GoodWheat are expected by the end of 2019.
The company also reported progress with its HB4 drought tolerant soybeans, noting that Verdeca, a joint venture between Arcadia and Bioceres Crop Solutions Corp, introduced HB4 soybeans at Expoagro, the largest farm show in Argentina.
The company reported in the first quarter of 2019, revenues were $158,000, compared to revenues of $214,000 in the first quarter of 2018. The company noted this change was primarily impacted by the decrease in government grant revenue, partially offset by the increase in product sales. The company reported a net loss for 1Q of $12.6 million, up from $10.6 million loss in the first quarter of 2018.
Arcadia shares slipped 3.5% at US$5.56 in after-hours trade.
Contact Katie Lewis at [email protected]