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CADIZ INC. ANNOUNCES $10 MILLION DIRECT PLACEMENT LED BY LARGEST INVESTORS
Heerema International Group Services Leads Investment LOS ANGELES, Nov. 10, 2022 /PRNewswire/ -- Cadiz Inc. (NASDAQ: CDZI, CDZIP) ("Cadiz," the "Company")
About this update from Cadiz, Inc.
[{"type":"text","content":"Heerema International Group Services Leads Investment\nLOS ANGELES, Nov. 10, 2022 /PRNewswire/ -- Cadiz Inc. (NASDAQ: CDZI, CDZIP) (\"Cadiz,\" the \"Company\") today announced that it has entered into a securities purchase agreement for a registered direct offering (\"Offering\") of 5 million shares of common stock for total proceeds of $10 million. The Company's largest equity shareholder Heerema International Group Services SA (\"Heerema IGS\"), a leading international offshore sustainable energy solutions company, anchored the Offering with an investment of $3.6 million. Funds managed by Odey Asset Management and California-based American Assets Capital Advisors, LLC (\"AACA\") also participated. Following the Offering, Heerema IGS will continue to beneficially own approximately 35.4% of the Company's outstanding common stock\n\n \n \n \n \n \n \n\n \nWe're proud to have the backing of our largest investors at this critical time in the company's history\"We're proud to have the backing of our largest investors at this critical time in the company's history,\" said Susan Kennedy, Executive Chair of the Cadiz Board of Directors. \"This investment will enable Cadiz to accelerate development of water conservation and supply projects to meet significantly increased demand for safe, affordable water in California and the West.\"\nThe Company intends to utilize net cash proceeds from the Offering for capital expenditures to accelerate development of the Cadiz Water Conservation and Storage Project and to scale deployment of the recently acquired water filtration systems from ATEC Systems (\"ATEC\"), as previously announced in the third quarter. Last month, the Company accelerated planned infrastructure investments to expand wellfield capacity to 36,000 acre-feet per year (\"AFY\"). This wellfield expansion will allow the company to operate the Northern Pipeline at maximum capacity (25,000 AFY) immediately upon putting the pipeline into service while continuing to support current operations.\nIn November 2022, Cadiz completed its asset acquisition from ATEC, a privately held water filtration technology company. The acquisition from ATEC will enable Cadiz to assist water agencies, community water systems and project partners in increasing water supplies from contaminated groundwater sources.\nIn addition to infrastructure investments ...