Partnership to sell industrial hemp seeds

Arcadia (Nasdaq: RKDA) shares rose 31 cents, or 13.1%, to $2.68 on the news.

GoodHemp is a disease-resistant, ultra-low THC hemp seed. Hemp is a plant in the cannabis family that is legal to grow under federal law, so long as it's low in THC, the chemical that makes cannabis psychoactive.

Arcadia is targeting farmers who want to grow hemp for its CBD, a non-psychoactive chemical found in cannabis and hemp, used in personal care products.

"With more than 17,000 acres grown in the state last year, and even more planned for 2020, California is a key region for U.S. hemp production," said Sarah Reiter, Arcadia's chief commercial officer, in a news release. "Through this strategic partnership with Grow West and Buttonwillow Warehouse Co., Arcadia gains access to every production acre in the state."

Hemp has been cultivated for thousands of years, but it has not been prototyped for a uniform crop with specific traits.

Arcadia has said its hemp seed sales in the first year are likely to exceed $3 million.

Grow West is based in Woodland. Buttonwillow is based in Bakersfield.

Arcadia announced its hemp product in December at the American Seed Trade Association CSS & Seed Expo in Chicago.

Since its December launch, Arcadia has expanded GoodHemp from five seed varieties to 10, mostly focused on compliant CBD production. The company said in future years it will breed seed varieties rich in additional CBD extracts, plus grain, protein and fiber hemp types. 

Arcadia occupies a 24,000-square-foot headquarters and research laboratory in Davis and a 25,000-square-foot research greenhouse near Woodland. The company develops beneficial plant traits through rapid prototyping and other methods. Along with GoodHemp, Arcadia's other products include GoodWheat, which comes in high-fiber and reduced-gluten varieties.

Source and Photo Courtesy of Sacramento Business Journal

Source: Sacramento Business Journal