Arcadia Biosciences Stock Triples On Merger Deal With Roosevelt Resources: Retail Elated
Arcadia, an agricultural biotechnology company, will issue shares of its common stock to Roosevelt’s partners in exchange for all equity interests in the privately held exploration and production company.
FollowArcadia Biosciences Inc. shares soared more than 200% Thursday morning, reaching levels not seen since March 2023, after the company announced a transformative merger with Roosevelt Resources LP.
The two firms have entered into a definitive securities exchange agreement to combine in an all-stock transaction.
Arcadia, an agricultural biotechnology company, will issue shares of its common stock to Roosevelt’s partners in exchange for all equity interests in the privately held exploration and production company.
Roosevelt’s assets include projects for carbon-capture utilization, storage, and oil and natural gas production.
Post the merger, Roosevelt’s current equity holders are expected to own approximately 90% of the combined company’s outstanding shares, with Arcadia shareholders holding the remaining 10%, subject to adjustments as outlined in the agreement.
The deal, anticipated to close in the first quarter of 2025 or later, hinges on customary regulatory approvals and closing conditions.
Arcadia CEO T.J. Schaefer emphasized the strategic rationale, stating that since July 2023, the company has undertaken a strategic review to maximize shareholder value.
“During that time, we have streamlined our operations to focus on Zola coconut water, reduced operating expenses and generated non-dilutive capital through the sale of our GoodWheat brand and our wheat IP,” he said.
“After a comprehensive and prolonged review, we have concluded that a business combination with Roosevelt Resources is the best alternative to create value for Arcadia and its shareholders.”
The merged entity will adopt the Roosevelt Resources name and trade on the Nasdaq under a new symbol.
RKDA sentiment and message volume Dec 5 as of 11:00 am ET | source: Stocktwits
Retail investors on Stocktwits celebrated the news, driving sentiment for RKDA to ‘extremely bullish’ amid the ticker appearing among the top five trending symbols on Thursday morning.
A user shared a screenshot of their long-term position initiated in 2021 at $2.61, remarking, “Three years of holding… and today paid off.”
Another user predicted a rally to $20–$30 by day’s end, citing the stock’s low float of just 1.36 million shares.
With Thursday’s meteoric rise, Arcadia’s year-to-date gains have climbed to 150%, vastly outperforming the S&P 500’s 27.47% increase.
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