DAVIS, CALIF. — Arcadia Biosciences has engaged Lake Street Capital Markets, a Minneapolis-based investment bank, to explore strategic opportunities, which may include an acquisition, the sale of the company, a merger, an asset sale, a joint venture, a licensing arrangement or a capital raise.

Any transaction could involve the company’s GoodWheat brand of pasta, pancakes and waffles.

“There are many categories in the grocery aisle where our proprietary wheat can provide significant differentiation, and we believe there is a tremendous opportunity to scale our business faster by purchasing an existing brand in a different category that has broad shelf placement and established distribution,” said Stanley E. Jacot, president and chief executive officer, in an Aug. 10 earnings call to discuss second-quarter results. “While we have nailed the field of target acquisitions, we have also received several inquiries from parties interested in a larger merger. So we feel that this is the right time to explore the myriad of options with an objective banking partner, especially after closing the second quarter of 2023 in an excellent cash position.”

Arcadia aims to have GoodWheat in 3,000 retail stores by the end of the year and may expand the brand into other categories beside grocery, Mr. Jacot said.

“So, more to come when we secure distribution,” he said.

Arcadia, to be more competitive, will lower prices for GoodWheat pasta in the third quarter. Mr. Jacot said he expects margins to erode slightly.

“It just is going to be kind of more like mid- to low-20s versus mid- to high-20s,” he said.

In the quarter ended June 30, Davis-based Arcadia had net income of $823,000, or 61¢ per share on the common stock, which compared to a net loss of $3.78 million in the same time of the previous year. The change in the fair value of the common stock warrant and option liabilities during the second quarter of the current year resulted in a non-cash gain of $4.4 million.

Revenues of $1.39 million were down 64% from $3.86 million. Revenues in the previous fiscal year’s first half included sales of GoodWheat grain and body care products that no longer are part of Arcadia’s portfolio.