Arcadia Biosciences (RKDA) shares were up more than 209% in recent Thursday premarket activity following an announcement that the company entered into a definitive securities exchange agreement that would combine it with Roosevelt Resources in an all-stock transaction.
Arcadia will issue shares to partners of Roosevelt in exchange for all of the equity interests in Roosevelt, the companies said in a joint statement. Roosevelt's current equity owners are expected to own 90% of the combined entity after the exchange, they added.
The business combination agreement was reached after Arcadia underwent a strategic review of alternatives, Arcadia Chief Executive TJ Schaefer said in the statement. "We have concluded that a business combination with Roosevelt Resources is the best alternative to create value for Arcadia and its shareholders."
After the transaction closes, Arcadia will change its corporate name to Roosevelt Resources, Inc. and expects to continue trading on Nasdaq under a new ticker symbol, the companies said. Closing of the transaction is anticipated to be in Q1.
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