Business
Cadiz Announces New $12 Million Equity Investment from Registered Direct Offering of Common Stock
Heerema International Group Services SA leading offering with $5 million investment Offering Priced at-the-Market LOS ANGELES, March 21, 2022 /PRNewswire/ --
About this update from Cadiz, Inc.
[{"type":"text","content":"Heerema International Group Services SA leading offering with $5 million investment\nOffering Priced at-the-Market\nLOS ANGELES, March 21, 2022 /PRNewswire/ -- Cadiz Inc. (Nasdaq: CDZI/CDZIP) (\"Cadiz\" or the \"Company\"), today announced that it has entered into a definitive securities purchase agreement for a registered direct offering (\"Offering\") of 6.86 million shares of common stock at a price of $1.75 per share for total proceeds of $12 million. The Offering is led by the Company's largest equity shareholder Heerema International Group Services SA (\"Heerema IGS\"), along with Company founder and Board member Keith Brackpool and affiliates of the Company's senior secured lender, B. Riley Securities. \n\n \n \n \n \n \n \n\n \nProceeds of the Offering will be used for working capital purposes and will support ongoing development activities related to Cadiz's water supply, storage and conveyance assets in California.\nHeerema IGS, a leading international offshore energy and sustainable solutions company, anchored the Offering with an investment of $5 million. In connection with the purchase of shares in this Offering, the Company has agreed to provide Heerema a right to appoint one observer to its Board of Directors or, in lieu of such board observer right, the right to fill one vacancy on its Board. Following the Offering, Heerema IGS will beneficially own 35.4% of the Company's outstanding common stock.\n\"Continued drought and water supply issues around the world strengthen our conviction that the Cadiz water supply, conservation and storage project is one of the most critical water infrastructure projects in the Western United States and a model for the rest of the world,\" said Victor R. Muller, Advisor to the Board of Heerema IGS. \"We support repurposing existing natural gas pipeline assets to transport water as the cornerstone of the Company's plans, and we are confident that our involvement will greatly help Cadiz execute on its mission. Sustainability is leading our decision-making processes in every aspect of our business, and we always strive to minimalize environmental impact in everything we do. This is why Cadiz fits our investment criteria seamlessly and we support the Company in achieving its objectives. \"\nCertain Cadiz board members, including Cadiz founder Keith Brackpool, invested $2.5 million in th...