Arcadia Biosciences to Merge With Roosevelt, Shares Surge 105%

Shares of Arcadia Biosciences RKDA surged 105% since it announced on Thursday that it signed a definitive securities exchange agreement with Roosevelt Resources LP to combine the two companies in an all-stock transaction.Details of the RKDA-Roosevelt MergerUnder the terms of the agreement, the partners of Roosevelt will receive shares of Arcadia Biosciences common stock in exchange for their equity interests. Upon closing, the current Roosevelt equity owners and Arcadia Biosciences shareholders will own approximately 90% and 10% of Arcadia Biosciences' outstanding shares, respectively.Following the closing of the deal, the new company will be called Roosevelt Resources Inc. and is expected to trade under a new trading symbol. The new entity will be managed by the current Roosevelt management team with the assistance of one or more members of Arcadia Biosciences management.The deal is expected to close during the first quarter of 2025, subject to regulatory approvals.Arcadia Biosciences’ Transformation to an Oil & Gas CompanyArcadia Biosciences has been conducting a thorough strategic assessment since July 2023 to identify opportunities for enhancing shareholder value.In May 2024, Arcadia Biosciences sold its GoodWheat brand to Above Food Corp. During the month, RKDA also sold its Resistant Starch (”RS”) Durum trait to Corteva Agriscience, a subsidiary of Corteva CTVA. The company received $4.0 million in cash from Corteva.Roosevelt is a privately held oil and gas company based in Texas. Its primary asset is a 16,208-acre CCUS project in the Texas Permian Basin, planned for development as an EOR project with anticipated peak production of 55,000 gross barrels of oil equivalent per day by 2051.Arcadia Biosciences will capitalize on Roosevelt’s vast oil and gas assets, particularly its CCUS project. The new entity marks a significant strategic shift for Arcadia Biosciences, transitioning from an agricultural biotech to an oil and gas company.The combined businesses will enhance shareholder value and streamline operations.RKDA Stock’s Price PerformanceRKDA’s shares have gained 93.2% over the past year compared with the industry's 4.5% growth.Image Source: Zacks Investment ResearchArcadia Biosciences’ Zacks Rank & Stocks to ConsiderRKDA currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks from the basic materials space are CF Industries Inc. CF and Ingevity Corporation NGVT. While CF sports a Zacks Rank #1 (Strong Buy) at present, NGVT carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.CF Industries has an average trailing four-quarter earnings surprise of 10.3%. The Zacks Consensus Estimate for CF’s 2024 earnings is pegged at $6.32 per share. CF’s shares gained 20.6% in the last year.Ingevity has an average trailing four-quarter earnings surprise of 95.4%. The Zacks Consensus Estimate for NGVT’s 2024 earnings is pegged at $2.55 per share. Its shares gained 25.7% in the last year.Free Today: Profiting from The Future’s Brightest Energy SourceThe demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. Nuclear energy is an ideal replacement.Leaders from the US and 21 other countries recently committed to TRIPLING the world’s nuclear energy capacities. This aggressive transition could mean tremendous profits for nuclear-related stocks – and investors who get in on the action early enough.Our urgent report, Atomic Opportunity: Nuclear Energy's Comeback, explores the key players and technologies driving this opportunity, including 3 standout stocks poised to benefit the most.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CF Industries Holdings, Inc. (CF): Free Stock Analysis Report Arcadia Biosciences, Inc. (RKDA): Free Stock Analysis Report Ingevity Corporation (NGVT): Free Stock Analysis Report Corteva, Inc. (CTVA): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks