DAVIS, Calif., Jan. 30, 2020 /PRNewswire/ -- Arcadia Biosciences, Inc. (Nasdaq: RKDA), a leader in science-based approaches to enhancing the quality and nutritional value of crops and food ingredients, released the following letter today from the company's President and Chief Executive Officer Matthew Plavan.
Our 2020 focus is clear: We are committed to rapid revenue growth, while simultaneously building on our reputation in crop innovation to establish a market leadership position in hemp seed and extracts. I'm pleased to share some key milestones achieved in the final quarter of 2019, and contextualize the market-differentiating approaches we are taking towards our financial goals.
In just 50 days following the launch of GoodHemp, our new USDA-compliant seed line, we've received over $3 million in pre-season seed purchase commitments.
Revenues for these initial commitments will be recognized when the seeds are delivered to growers, between second and fourth quarter this year. With grower interest in our proprietary USDA-compliant seed line accelerating, we anticipate additional purchases over the next few months as farmers focus on securing quality genetics for their upcoming spring plantings. Revenues from these committed and expected future orders are in line with the greater than $10 million in total revenues for 2020 we forecasted to shareholders.
A vital element of our strategy to become the market leader in high-value hemp innovations is deploying the best breeding technologies in close partnership with the hemp grower community. We are essentially rapid prototyping novel non-GM hemp varieties that target quality and performance characteristics highly desired by growers to overcome their greatest challenges, while working directly with them in field deployment and monitoring to accelerate their speed to success.
This new proprietary discovery process – called ArcaTech – combines modern breeding science and genomics technology with real-time market intelligence from the field. Elite growers who enroll in our GoodHemp Innovation Partners program – located in six major hubs including Hawaii, the Pacific Northwest, Southern California, Northern California, the Desert Southwest and the Mountain West – will provide an invaluable feedback loop to guide our development strategies.
These developments are exciting, and just the beginning of our plans for this burgeoning industry. The strength of our scientific and agronomic foundations have positioned us to not only meet the acute demand for quality and compliant seeds from growers targeting the multi-billion dollar cannabinoid markets, but also to unlock the full potential of this plant through its numerous other applications in the industrial and food ingredient markets.
Before I close, I'd like to take a moment to highlight a significant milestone for GoodWheat. In December, Arcadia met initial commercial goals by recording first sales in two GoodWheat varieties optimized for resistant starch and reduced gluten. The limited first run of our Reduced Gluten Wheat Flour was sold online in two-pound bags and to date we have sold 90 percent of our available inventory, confirming interest from consumers avoiding gluten. We are now making commercial plans for this spring's wheat harvest.
The inherent value of Arcadia is our unique combination of innovative, proprietary technology platforms and a track record of proven results in both the lab and the field. We are well-positioned for significant growth and market differentiation in 2020, with a focus on breeding innovation, grower collaboration and compelling commercial product lines. I am committed to frequent communication with shareholders, and encourage you to subscribe to our IR newsletter, The Messenger, for regular updates on our progress.
CEO, Arcadia Biosciences
About Arcadia Biosciences, Inc.
Arcadia Biosciences (Nasdaq: RKDA) is a leader in science-based approaches to enhancing the quality and nutritional value of crops and food ingredients. The company's GoodWheat™ branded ingredients deliver health benefits to consumers and enable consumer packaged goods companies to differentiate their brands in the marketplace. Arcadia'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. The company's new GoodHemp seed catalog delivers genetically superior hemp seeds, clones, transplants, flower and extracts, applying the company's proprietary crop innovation technology, ArcaTech, to an ancient crop. 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, including statements regarding revenue to be recognized. 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 and its partners' and affiliates' ability to develop and sell commercial products incorporating their traits, and complete the regulatory review process for such products; Arcadia's and its partners' ability to fulfill current and follow-on purchase commitments; Arcadia's compliance with laws and regulations that impact Arcadia's business, and changes to such laws and regulations; Arcadia's ability to capture revenue in 2020 and beyond; the growth of the global wheat and hemp markets; Arcadia's future capital requirements and ability to satisfy its capital needs; and the other risks set forth in Arcadia's filings with the Securities and Exchange Commission from time to time, including the risks set forth in Arcadia's 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.
SOURCE Arcadia Biosciences, Inc.