10/15/2019 | Press release | Distributed by Public on 10/15/2019 02:54
- The company is scaling its Hawaiian hemp cultivation footprint, introducing a new autoflowering varietal and initiating oil extraction operations on the islands -
DAVIS, Calif. (Oct. 15, 2019) - Arcadia Biosciences, Inc. (Nasdaq: RKDA), a leader in science-based approaches to enhancing the quality and nutritional value of crops and food ingredients, today issued an update on its recently formed joint venture with Legacy Ventures Hawaii, Archipelago™ Ventures. The joint venture has:
Established in August 2019, Archipelago Ventures joins Arcadia's extensive genetic expertise and resources with Legacy's proven experience in extraction and sales - and leverages Arcadia's existing licensed cultivation facility in Hawaii. The result is one vertically integrated supply chain, from seed to sale, enabling Archipelago to deliver high quality hemp extract. Former Gold Glove and World Champion Major League Baseball player Shane Victorino is a principal in the company, along with other native islanders committed to building Hawaii's capacity to supply branded health and wellness goods.
'The introduction of hemp cultivation in Hawaii is already transforming the lives of farmers and local communities, creating new professional and economic avenues for islanders' and stimulating our economy,' said Victorino. 'We're excited to expand our operations and capabilities so quickly after forming Archipelago Ventures, making progress on both the cultivation and extraction fronts.'
With an expanded 30-acre cultivation footprint in Hawaii, Archipelago Ventures will increase its biomass production and widen its scientific testing to examine the effects of different agricultural variables within one microclimate, such as soil type and elevation. This will also allow the company to further develop and test highly specialized, resilient and productive proprietary hemp seeds designed to behave reliably in a given geographic environment, bringing greater sophistication and reliability to the island's cultivation practices.
Understanding how to fine-tune hemp genetics for different climates is critical to growing the crop profitably, a particular challenge on these islands. According to the Hawaii Department of Agriculture, more than half of the hemp crops cultivated over the past year as part of the state's industrial hemp pilot program have tested 'hot,' meaning their levels of THC were above the .3% federal limit for hemp. Nearly all of these hot crops had to be destroyed. Archipelago has had the highest success rate of any licensed cultivator in Hawaii, with 'hot crop' incidences substantially below the state average.
'We are proud to be the first major crop innovation company to recognize and act on Hawaii's potential as a center of excellence for hemp research and cultivation,' said Matthew Plavan, CEO of Arcadia Biosciences. 'Our researchers and scientists are some of the best and most experienced in the world, and Hawaii's unique geographic and climate conditions for growing and harvesting hemp year-round give us a long-term competitive advantage that many mainland cultivators cannot match.'
While mainland outdoor hemp farms will be largely dormant until next spring's planting season, Hawaii's sunny, temperate climate will allow Archipelago to grow year-round, with at least two additional growing cycles gained during winter months. Through the introduction of a new, autoflowering hemp varietal that is not dependent on changing daylight patterns and day lengths, Archipelago will further maximize Hawaii's geographic advantages by producing taller and more productive hemp plants unimpeded by the agronomic constraints of day length.
Said Plavan, 'We are laser-focused on fine-tuning and accelerating our vertically-integrated hemp cultivation and extraction operations in Hawaii with our partners at Archipelago Ventures, in order to deliver sales as soon as possible.'
About Arcadia Biosciences, Inc.
Arcadia Biosciences (Nasdaq: RKDA) develops and markets high-value food ingredients and nutritional oils that help meet consumer demand for a healthier diet. Arcadia's GoodWheat™ branded ingredients deliver health benefits to consumers and enable consumer packaged goods companies to differentiate their brands in the marketplace. The company's agricultural traits are being developed to enable farmers around the world to be more productive and minimize the impact of agriculture on the environment. Arcadia Specialty Genomics™ is a business unit within Arcadia Biosciences dedicated to the optimization and standardization of cannabis plant content, quality, resiliency and yield. For more information, visit www.arcadiabio.com.
Note Regarding Forward-Looking Statements:
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, and reported results should not be considered as an indication of future performance. These risks and uncertainties include, but are not limited to: Arcadia's expectations about the legal cannabis industry and potential demand for our products; the uncertainty of the laws and regulations relating to hemp and products derived therefrom; the inherent uncertainty associated with the development of new projects; our ability to obtain proper licenses and successfully complete research programs related to hemp; the acceptance of our products in the marketplace; the impact of competitive products and pricing; risks related to costs, delays and uncertainties associated with potential future scientific research, product development, clinical trials and the regulatory approval process; our partners' and affiliates' ability to develop commercial products, complete the regulatory review process for such products, acquire land and facilities to grow hemp and produce hemp derived products, and extract CBD and other hemp derived products from hemp; our compliance with laws and regulations that impact our business, and changes to such laws and regulations; our future capital requirements and ability to satisfy our capital needs; our ability to develop, enforce and defend our intellectual property rights; and the other risks set forth in our filings with the Securities and Exchange Commission from time to time, including the risks set forth in our Annual Report on Form 10-K for the year ended December 31, 2018 and other filings. These forward-looking statements speak only as of the date hereof, and Arcadia Biosciences, Inc. disclaims any obligation to update these forward-looking statements.
Chief Financial Officer