LOS
ANGELES, March 7, 2025 /PRNewswire/ -- Cadiz Inc.
(NASDAQ: CDZI/CDZIP) (the "Company"), 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 5,715,000 shares of its
common stock in a registered direct offering (the "Offering") at a
price of $3.50 per share. The
aggregate gross proceeds to the Company from the Offering are
expected to be approximately $20
million, before deducting the placement agent's fees and
other offering expenses payable by the Company.
The Offering is expected to close with institutional investors
on or about March 10, 2025, subject
to satisfaction of customary closing conditions.
The Company intends to use the net proceeds from the Offering
for capital and other expenses related to the development and
construction of its groundwater banking project in the Mojave
Desert (the "Mojave Groundwater Bank"), which may include
acquisition of equipment and materials intended to be used in
construction of facilities related to its northern and/or southern
pipeline, 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 the
Company and its subsidiaries, business development activities,
other capital expenditures, working capital, the expansion of the
business and acquisitions and general corporate purposes. The
Company expects that expenses advanced by it related to the Mojave
Groundwater Bank for which the net proceeds may be used will be
reimbursed to the Company upon the closing of the expected project
financing of the Mojave Groundwater Bank through Mojave Groundwater
Storage Company, LLC ("MGSC"), a new entity established by the
Company for purposes of construction, ownership, and operation of
the Mojave Groundwater Bank and related projects.
Roth Capital Partners, LLC is acting as the exclusive placement
agent in the registered direct offering.
The securities described above were offered pursuant to a shelf
registration statement on Form S-3, including a base prospectus,
that was initially filed by the Company on August 13, 2024 with the Securities and Exchange
Commission (the "SEC") 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: Roth Capital Partners, LLC, 888 San Clemente
Drive, Suite 400, Newport Beach,
CA 92660, (800) 678-9147, email at rothecm@roth.com., or by
accessing the SEC's website at www.sec.gov.
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 intended use of
proceeds, the expected completion of financing of the Mojave
Groundwater Bank through MGSC, and the expected reimbursement of
expenses advanced by the Company in connection with the development
of the Mojave Groundwater Bank. No assurance can be given that the
proceeds will be used as currently intended or that financing of
the Mojave Groundwater Bank through MGSC will be completed as
planned or that we will be reimbursed for expenses advanced in
connection with this project. 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,
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.
