LOS
ANGELES, Nov. 4, 2024
/PRNewswire/ -- Cadiz, Inc. (NASDAQ: CDZI/CDZIP), a California water solutions company, today
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.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy these securities, nor shall there
be any sale of these securities in any state or other jurisdiction
in which such offer, solicitation or sale would be unlawful prior
to the registration or qualification under the securities laws of
any such state or other jurisdiction.
About Cadiz, Inc.
Founded in 1983, Cadiz, Inc.
(NASDAQ: CDZI) is a California
water solutions company dedicated to providing access to clean,
reliable and affordable water for people through a unique
combination of water supply, storage, pipeline and treatment
solutions. With 45,000 acres of land in California, 2.5 million acre-feet of water
supply, 220 miles of pipeline assets and the most cost-effective
water treatment filtration technology in the industry, Cadiz offers
a full suite of solutions to address the impacts of climate change
on clean water access. For more information, please visit
https://www.cadizinc.com.
Forward-Looking Statements
This release contains "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
and such forward-looking statements are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements include, without
limitation, statements related to the Company's expectations
with respect to the completion and timing of the closing of the
registered direct offering and the intended use of proceeds. No
assurance can be given that the registered direct offering
discussed above will be completed on the terms or timing described
in this release or at all. Management believes that these
forward-looking statements are reasonable as and when made.
However, such forward-looking statements are subject to risks and
uncertainties, and actual results may differ materially from any
future results expressed or implied by the forward-looking
statements. Risks and uncertainties include, without limitation,
changes in market conditions and the satisfaction of customary
closing conditions related to the registered direct offering, risks
and uncertainties associated with the Company's business and
finances in general, as well as other risk factors described from
time to time in the Company's filings with the SEC, including its
Annual Report on Form 10-K for the year ended December 31, 2023, and subsequent filings. In
light of the significant uncertainties in these forward-looking
statements, you should not rely upon forward-looking statements as
predictions of future events. The Company undertakes no obligation
to publicly update any forward-looking statement, whether written
or oral, that may be made from time to time, whether as a result of
new information, future developments or otherwise, except as
required by law.
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SOURCE Cadiz, Inc.
