Shares of Marrone Bio Innovations (NASDAQ:MBII) rose today after the company announced it filed a shelf registration statement to potentially raise capital over the next three years.
As of 3 p.m. EST Monday afternoon, the stock was up 12%.
The agricultural provider of sustainable bioprotection and plant health solutions said today it filed a $90 million shelf registration statement to potentially sell various securities over a three-year period. The proceeds would be used to give Marrone Bio more flexibility to finance future business opportunities, the company said in a statement.
The plan helps the company "to pursue potential future growth initiatives and streamlines the process if circumstances arise that may require additional capital," Marrone Bio CEO Kevin Helash said in the announcement.
The company's biological solutions are used in the fast-growing sustainable agriculture segment to protect plants from diseases, insects, and weeds, promote plant health, and enhance water and nutrient efficiency. Sustainable agriculture represents about 14% of the total crop protection market today, but biological solutions are expected to grow four to five times faster than the conventional global crop protection market through 2025, according to the company.
Marrone Bio also serves the legal cannabis market, and shares in the company have more than doubled since the start of the year as investors have become more optimistic in that sector's growth. Investors today are hoping the additional funding plan announced will aid in continuing growth going forward.