DAVIS, CA - At the recent annual meeting of Arcadia Biosciences , Inc. (NASDAQ:RKDA), shareholders passed several significant resolutions, including the election of directors, the ratification of the company's independent accountants, and the approval of an amendment to the equity incentive plan.
The meeting, held on Monday, June 25, 2024, saw a majority of shareholders represented, with over 50% of outstanding shares voting in person or by proxy. Two directors, Amy Yoder and Lilian Shackelford Murray, were elected to serve until 2027, with votes of 160,017 for Yoder and 149,613 for Murray, against a backdrop of withheld votes and non-votes by brokers.
In addition to board elections, shareholders ratified the appointment of Deloitte & Touche LLP as the independent registered public accountants for the fiscal year ending December 31, 2024. The approval was near-unanimous, with 666,133 votes for and only 16,460 votes against or abstaining.
A key corporate governance measure, the amendment to the 2015 Omnibus Equity Incentive Plan, was also approved, albeit with a narrower margin. The plan received 120,214 votes for, 60,507 against, and 652 abstentions.
Furthermore, the executive compensation for the company's named officers received a nod of approval from the shareholders in an advisory vote, with 153,487 votes for and 27,886 votes against or abstaining.
This report is based on information contained in an 8-K filing with the Securities and Exchange Commission.
In other recent news, Arcadia Biosciences has been active with a series of strategic transactions. The company sold its Resistant Starch Durum Wheat trait to Corteva (NYSE:CTVA) Agriscience for $4 million, granting Corteva ownership of 24 patents across 20 countries. In another deal, Arcadia sold certain assets of its GoodWheat business, along with $2 million in cash, to Above Food Corp., receiving a $6 million promissory note in return.
These transactions have been seen as strengthening Arcadia's balance sheet, extending its operational runway, and allowing a shift in focus to the Zola Coconut Water franchise. H.C. Wainwright, following these developments, reduced its price target for Arcadia from $10.00 to $6.00, but maintained its Buy rating on the stock.
In the company's Q1 2024 earnings call, it reported increased revenue and gross profit margins and a decrease in operating expenses, despite a loss from continuing operations of $3.1 million. GoodWheat expanded distribution channels, and Zola Coconut Water saw a 10% year-over-year increase in both unit and dollar sales.
InvestingPro Insights
In light of Arcadia Biosciences' recent annual meeting, a closer look at the company's financial metrics and analyst insights from InvestingPro provides a more detailed picture of its market standing. With a market capitalization of just $4.22 million and a Price / Book multiple of 0.4 as of the last twelve months of Q1 2024, the company is trading at what may be considered a low valuation relative to its book value. This could be an indicator of potential undervaluation, an aspect that might interest value investors.
Additionally, despite a slight quarterly revenue growth of 1.87% in Q1 2024, the overall revenue trend has been negative, with a 1.42% decline over the last twelve months of the same period. This aligns with one of the InvestingPro Tips indicating that analysts anticipate a sales decline in the current year. The company's cash position is also noteworthy, as it holds more cash than debt on its balance sheet, a sign of financial stability that might reassure investors. However, it's crucial to note that Arcadia Biosciences has been quickly burning through cash, which could be a point of concern for long-term sustainability.
For those interested in exploring these financial nuances further, InvestingPro offers additional insights and tips on Arcadia Biosciences, which can be accessed through InvestingPro. Utilize the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, and discover the 10 additional InvestingPro Tips that can help you make more informed investment decisions.
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