Cadiz Inc. Closes Public Offering of Common Stock and Sr. Debt Refinancing
07 December 2016 - 3:40AM
Cadiz Inc. (NASDAQ:CDZI) (“Cadiz” or the “Company”) is pleased to
report that it has closed a public offering and debt refinancing in
two separate transactions that will enable the Company to fully
execute its 2017 business plan, which includes final design and
implementation of the Cadiz Valley Water Conservation, Recovery and
Storage Project (“Cadiz Water Project”), a Southern California
water supply project approved to deliver much-needed supplies to
400,000 people.
In an underwritten public offering of 1,000,0000 shares of the
Company’s common stock, together with the exercise of an option by
the underwriter to purchase an additional 150,000 shares, the
Company raised gross proceeds of approximately $11.2 million
(before the deduction of underwriting discounts and commissions).
The successful offering and option exercise by the underwriter,
which both closed today, resulted in net proceeds of approximately
$10.6 million. Proceeds will be utilized for working capital,
business development activities, capital expenditures related to
the implementation of the Cadiz Water Project, and general and
administrative expenses. The Company filed a Form 8-K on December
1, 2016 with full detail about the offering.
Separately, in a debt refinancing package completed last week
with its senior lenders, the Company extended its $43 million
senior secured debt for two additional years from September 28,
2017 to September 28, 2019, which allows the Company to execute its
2017 business plans without a pending maturity milestone. As an
additional benefit, the credit agreement also now provides for new
interest payment options and the reduction of future fee
obligations if the Company moves forward with Cadiz Water Project
construction or other infrastructure financing alternatives within
the next six months. The Company filed a Form 8-K also on December
1, 2016 with further details about the new Senior Debt
agreement.
“We are very optimistic about our ability to achieve our
remaining milestones in 2017 and ready the Water Project for
construction,” said Scott Slater, Cadiz CEO & President. “The
new working capital received as a result of the public offering
coupled with our recent debt extension will enable us to turn our
complete attention to finalizing the project.”
The Cadiz Water Project is designed to provide a new, reliable
water supply for approximately 400,000 people in Southern
California without causing harm to the environment. After a
multi-year public review, it was approved in 2012 in accordance
with the California Environmental Quality Act, the nation’s
toughest environmental law. Planned exclusively for private land
and a disturbed, existing railroad corridor, the public-private
partnership is expected to generate a $1 billion dollar economic
stimulus and create and support nearly 6,000 jobs. The
nearly-shovel ready Project is widely supported by bi-partisan
elected leaders, labor, agriculture and business communities and
has been upheld against six separate challenges in California’s
Courts, including the California Court of Appeal in May 2016.
About Cadiz
Founded in 1983, Cadiz Inc. is a publicly-held renewable
resources company that owns 70 square miles of property with
significant water resources in Southern California. We maintain an
organic agricultural development in the Cadiz Valley of eastern San
Bernardino County, California and are partnering with public water
agencies to implement the Cadiz Water Project. We abide by a
wide-ranging “Green Compact” focused on environmental conservation
and sustainable practices to manage its land, water and
agricultural resources. For more information about Cadiz, visit
http://www.cadizinc.com/.
Safe Harbor Statement
All statements in this press release that are not based on
historical fact are “forward-looking statements” within the meaning
of the Private Securities Litigation Reform Act of 1995 and the
provisions of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended While management has based any forward-looking statements
included in this press release on its current expectations, the
information on which such expectations were based may change. These
forward-looking statements rely on a number of assumptions
concerning future events and are subject to a number of risks,
uncertainties and other factors, many of which are outside of our
control, which could cause actual results to materially differ from
such statements. Such risks, uncertainties and other factors
include, but are not limited to, our ability to maximize value from
our Cadiz, California land and water resources, our ability to meet
our ongoing working capital needs, the fluctuation of global
economic conditions, the performance of management and our
employees, our ability to obtain financing, competition, general
economic conditions and other factors that are to be detailed in
our periodic and current reports available for review at
www.sec.gov. Furthermore, we operate in a competitive environment
where new and unanticipated risks may arise. Accordingly, investors
should not place any reliance on forward-looking statements as a
prediction of actual results. We disclaim any intention to, and
undertake no obligation to, update or revise forward-looking
statements to reflect events or circumstances that subsequently
occur or of which we hereafter become aware.
Contact:
Courtney Degener
213.271.1603
cdegener@cadizinc.com
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