Stocks To Watch: Arcadia Biosciences, Inc. [NASDAQ: RKDA] is currently up in pre-market trading, and its gaining. This is a continuation of last week’s rally when it closed the week with gains of 124.38%. This followed the USDA approval of the company’s drought-tolerant soybeans. The company developed this product in partnership with Bioceres Crop Solutions Corp. Earlier tests of this trait of Soybean, known as HB4, resulted in a 14% increase in yields, and also recorded a more positive response to droughts. HB4 has been tested for 9 planting seasons in different countries and returned the same positive results.
Through this approval, RKDA now has an opportunity to commercialize these soybeans in the U.S. According to Raj Ketkar, the company CEO, FDA and USDA approval are important steps towards commercialization. He also added that, he expects the company to start selling its products in Argentina through its joint-venture with Verdeca. He also added that the company intends to offer more insights into its plans for U.S commercialization, when announcing its Q2 results on the 14th of August.
From a look at its trading activity, the company’s pre-market trading activity has pushed it above Friday’s trading range of $2.7 and $4.97 and this may be from a potential short squeeze. As at Friday’s close, the company had a market cap of $28.264 million, and its intra-day trading volumes stood at 56,732,718. This week’s trading activity could be influenced by the upcoming Q2 results on the 14th of August. If they beat expectations, it could be a boost to a stock that is already bullish. Bullish sentiment could also be boosted by the announcement of a plan to commercialize HB4 in the U.S. If it’s a viable one, it would be indicative of strong performance in the future, and a potential boost to the company’s valuation.
About Arcadia Biosciences Inc
This is an Agricultural food ingredients company. It is focused on the development and commercialization of nutrition traits. Some of the company’s core services include plant traits enhancements which encompass things like drought tolerance and nitrogen efficiency. The company also makes nutritional oils aimed at enhancing the nutritional capacity of pet foods among others. The company has a number of strategic partnerships with other corporations, in advancing its strategic interests.