Arcadia Biosciences Inc. Shares Plunge 13%

Arcadia Biosciences Inc. (RKDA) announced Friday that it has received notice from Roosevelt Resources terminating the securities exchange agreement signed by both parties on December 4, 2024. The company stated that the agreement was originally intended to facilitate a merger transaction between the two enterprises.

Arcadia CEO T.J. Schaefer said, “Given these circumstances, the company will recommence its strategic review process to create shareholder value.”

Schaefer added, "Over the past two and a half years, we have streamlined our operational structure, significantly reduced operating expenses, and successfully expanded the Zola coconut water brand while avoiding long-term debt. We retain approximately 2.7 million shares of common stock in Above Food Ingredients and believe we are entitled to additional compensation for the May 2024 sale of the GoodWheat business. We believe these assets, combined with our Nasdaq listing and the Zola business, position Arcadia as an attractive target for a merger or strategic transaction."

This sudden development has cost me dearly. Should I still hold on?