Cadiz, Inc., a California water solutions company, announced that it has entered into a placement agent agreement for the purchase and sale of an aggregate of 7,000,000 shares of its common stock in a registered direct offering (the "Offering") at a price of $3.34 per share. The aggregate gross proceeds to the Company from the Offering are expected to be approximately $23.38 million, before deducting the placement agent's fees and other offering expenses payable by the Company. The Company's largest equity shareholder, Heerema International Group Services SA ("Heerema"), participated in the Offering maintaining ownership of approximately 34% of the Company's common stock.
The Offering is expected to close on or about November 5, 2024, subject to the satisfaction of customary closing conditions.
The Company intends to use the net proceeds from the Offering to advance development of its water supply and groundwater banking project which may include acquisition of equipment and materials intended to be used in construction of facilities related to its northern and /or southern pipeline projects which the Company expects to begin in 2025. Net proceeds from the Offering may also be used for the equipment and materials related to wellfield infrastructure on land owned by it and its subsidiaries, business development activities, other capital expenditures, working capital, the expansion of the business and acquisitions, and general corporate purposes.
B. Riley Securities is acting as the sole placement agent in the registered direct offering.
The securities described above were offered pursuant to a shelf registration statement on Form S-3 with the Securities and Exchange Commission (the "SEC"), including a base prospectus, that was initially filed by the Company on August 13, 2024 and declared effective on August 22, 2024. A final prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and will be available for free on the SEC's website located at http://www.sec.gov.
Copies of the final prospectus supplement and accompanying prospectus relating to the offering may be obtained, when available, from: B. Riley Securities, 1300 17th Street North, Suite 1300, Arlington, Virginia 22209, Attn: Prospectus Department, by email at prospectuses@brileyfin.com or by telephone at (703) 312-9580.
