Arcadia Biosciences Announces Management Succession; Provides Financial Guidance
— Chief Financial Officer Matthew Plavan succeeds CEO Raj Ketkar, who will retire September 1 —
— Controller Pam Haley is appointed Chief Financial Officer —
— Company issues financial guidance for 2020 and 2021 —
DAVIS, Calif. (August 26, 2019) – Arcadia Biosciences, Inc. (Nasdaq: RKDA), a leader in science-based approaches to enhancing the quality and nutritional value of crops and food ingredients, announced today that Raj Ketkar, president and CEO, will retire effective September 1, 2019. In line with its succession plan, the board has appointed Matthew Plavan to chief executive officer and member of the board of directors. Plavan is succeeded by Pam Haley as Arcadia’s new chief financial officer.
“I am thankful to the board and the team at Arcadia for their support during my tenure at Arcadia” said Ketkar. “I wish Arcadia the best in its journey to continued success.”
“I personally, and on behalf of the Board, want to thank Raj for his leadership at Arcadia,” said Kevin Comcowich, chairman of the board. “Raj has built a strong executive team and robust commercial capabilities, leaving Arcadia well positioned to execute the commercialization of our product portfolio.”
Added Comcowich, “We are pleased to welcome Raj’s successor, Matt Plavan, to the board and appoint him CEO of Arcadia. During his tenure with the company, Matt has proven to be a strong, dynamic and innovative leader. We are confident he is the right person to lead this next phase of Arcadia’s transition from an R&D focused company to one with growing commercial sales.”
Since joining the company in 2016 as chief financial officer, Plavan has played an instrumental role in shifting the company’s focus towards crop innovation and commercialization. In February, he was named president of Arcadia’s new strategic business unit devoted to hemp, Arcadia Specialty Genomics.
Plavan is an accomplished senior executive with more than 30 years of successful leadership experience in public and private companies within the ag-tech, cell-therapy and healthcare industries. Prior to joining Arcadia in 2016, he served as CEO and board member at Cesca Therapeutics. Plavan holds a Bachelor of Arts in Business Economics from University of California at Santa Barbara and is a certified public accountant.
“I am grateful to the board for this opportunity and honored to lead such an exceptional organization of scientists, strategists and innovators,” said Plavan. “I look forward to working with this talented team to achieve large-scale commercialization of our signature nutritional ingredient, GoodWheatTM, and accelerate our vertically-integrated hemp seed, cultivation and extraction operations in Hawaii and other legal U.S. markets.”
Plavan continued, “Our commercial progress thus far in 2019, punctuated by our Arista wheat collaboration announced today, has illuminated our path to new revenue generation. With global distribution channels set for our flagship GoodWheat ingredient— high fiber resistant starch wheat—and our acquired experience with hemp in the lab, the field and in the product markets, we now have a clearer view on the timing and scale of incoming revenues. In fact, we believe these revenues are imminent and could scale significantly from our current levels.
“As a result, we can with confidence provide our investors financial guidance to better align market expectations for growth and value creation at Arcadia,” Plavan said. “Specifically, in 2020 and 2021, we expect total revenues will exceed $10 million and $30 million, respectively. And, with this revenue trajectory, we expect to begin generating net cash from operations in mid-to-late 2021.
“We are aligned around a single-minded focus: profitable growth. We look forward to reporting our key milestone achievements in the lab, in the field and in the commercial markets as we progress towards accomplishing these financial goals,” Plavan concluded.
Plavan’s successor as chief financial officer, Pam Haley, joined Arcadia as accounting manager in 2005 and has held several key positions, most recently controller. Haley brings more than 25 years of financial and accounting experience and previously worked in the telecommunications and semiconductor industries, in addition to public accounting, prior to joining Arcadia. She is a certified public accountant and a graduate of the University of Arizona where she earned a bachelor’s degree in accounting.
About Arcadia Biosciences, Inc.
Arcadia Biosciences, Inc. (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 environmental impact of agriculture. 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, including statements about commercializing our products, our growth and our guidance regarding our revenue in 2020 and 2021 and our net cash from operations in 2021. 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: the price and demand for our wheat and hemp related products are lower than expected; we are not able to produce or source a sufficient supply of hemp that complies with federal law; laws governing the growth and commercialization of hemp and hemp derived products are enacted by the states more slowly than expected; we and our partners and affiliates are not successful at developing and commercializing products; we are unable to comply with changing laws and regulations in a cost-effective manner; we are unable to source sufficient capital for operations and growth; 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.
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