Cadiz Inc. Completes Agreements to Exchange Outstanding Convertible Notes Due March 2020 for Preferred Stock & Extend Maturit...
10 March 2020 - 12:00AM
Business Wire
Company Reduces
Overall Debt Burden by Over One-Half
Company also
Completes ATM Offering
Today, Cadiz Inc. (NASDAQ: CDZI)
(“Cadiz”, the “Company”), a California business dedicated to
sustainable water and agricultural projects, announced that it has
entered into agreements with the holders of the Company’s
outstanding Convertible Notes due March 2020 (“Convertible Notes”)
to exchange approximately $27 million of outstanding principal
amount of the Convertible Notes into a new series of convertible
preferred stock that is convertible into common stock no later than
March 2025 and has no dividend or required redemption. All
remaining Convertible Notes were converted into common stock prior
to their March 5, 2020 maturity date in accordance with their terms
and the resulting common stock has been issued and is already
outstanding. Concurrent with the exchange agreements, the Company
also entered into an option agreement with its senior lender,
Apollo Special Situations Fund, L.P., that provides the Company the
right to extend the maturity date of its senior mortgage debt
(“Senior Debt”) at the Company’s option from the current maturity
date of May 2021 to May 2022. In addition, the Company has
completed its previously disclosed At the Market Offering, which
raised approx. $25 million for its development program and working
capital.
As of result of these agreements and following these
transactions, the Company has eliminated all convertible debt,
which was approximately $74 million at the end of Q3 2019, reduced
its overall debt burden by more than one-half, improved its working
capital position and obtained the ability to address its Senior
Debt over the next two years.
“These agreements and transactions enable a significant
improvement to our balance sheet and will allow us to remain
focused on executing on important milestones for our water and
agricultural projects,” said Scott Slater, Cadiz CEO and President.
“We thank our shareholders and lenders for their support of these
efforts.”
Armory Securities served as financial advisor to the
Company.
The information in this press release is qualified in its
entirety by reference to the Current Report on Form 8-K filed with
the Securities and Exchange Commission on March 9, 2020.
About Cadiz Inc.
Founded in 1983, Cadiz Inc. (NASDAQ: CDZI) is a California
business dedicated to sustainable water and agricultural projects.
We own 70 square miles of property with significant water resources
in Southern California and are the largest agricultural operation
in San Bernardino, California, where we have sustainably farmed
since the 1980s. We are also partnering with public water agencies
to implement the Cadiz Water Project, recently named a Top 10
Infrastructure Project that over two phases will create a new water
supply for approximately 400,000 people and make available up to 1
million acre-feet of new groundwater storage capacity for the
region. Guided by a holistic land management plan, we are dedicated
to pursuing sustainable projects and practicing responsible
stewardship of our land, water and agricultural resources. For more
information, please visit www.cadizinc.com.
FORWARD LOOKING STATEMENT: This release contains forward-looking
statements that are subject to significant risks and uncertainties,
including statements related to the future operating and financial
performance of the Company and the financing activities of the
Company. Although the Company believes that the expectations
reflected in our forward-looking statements are reasonable, it can
give no assurance that such expectations will prove to be correct.
Factors that could cause actual results or events to differ
materially from those reflected in the Company’s forward-looking
statements include the Company’s ability to maximize value for
Cadiz land and water resources, the Company’s ability to obtain new
financing as needed, the receipt of additional permits for the
water project and other factors and considerations detailed in the
Company’s Securities and Exchange Commission filings.
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version on businesswire.com: https://www.businesswire.com/news/home/20200309005465/en/
Cadiz Inc. Courtney Degener 213-271-1603 (o) 703-888-6054
(m) cdegener@cadizinc.com
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