Business
Cadiz Inc. Completes Agreements to Exchange Outstanding Convertible Notes Due March 2020 for Preferred Stock and Extend Maturity Date of Senior Secured Debt to May 2022
Company Reduces Overall Debt Burden by Over One-Half Company also Completes ATM Offering LOS ANGELES--(BUSINESS WIRE)-- Today, Cadiz Inc. (NASDAQ: CDZI)
About this update from Cadiz, Inc.
[{"type":"text","content":"\nCompany Reduces Overall Debt Burden by Over One-Half\n\n\nCompany also Completes ATM Offering\n\n LOS ANGELES--(BUSINESS WIRE)--\n\nToday, 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.\n\n\nAs 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.\n\n\n“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.”\n\n\nArmory Securities served as financial advisor to the Company.\n\n\nThe 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.\n\n\nAbout Cadiz Inc. \n\n\nFounded in 19...