Business
Cadiz Inc. Prices $50 Million Offering of Depositary Shares
LOS ANGELES, June 30, 2021 /PRNewswire/ -- Cadiz Inc. ("Cadiz", the "Company" or "we") (NASDAQ: CDZI) today announced the pricing of its underwritten
About this update from Cadiz, Inc.
[{"type":"text","content":"LOS ANGELES, June 30, 2021 /PRNewswire/ -- Cadiz Inc. (\"Cadiz\", the \"Company\" or \"we\") (NASDAQ: CDZI) today announced the pricing of its underwritten registered public offering of 2,000,000 depositary shares at an initial public offering price of $25.00 per depositary share, raising gross proceeds of $50 million before deducting underwriting discounts and other estimated offering expenses. The offering is expected to close on or about July 2, 2021, subject to customary closing conditions. \nEach depositary share represents a 1/1000th fractional interest in a share of the Company's 8.875% Series A Cumulative Perpetual Preferred Stock (the \"Series A Preferred Stock\"). The Company's depositary shares are expected to begin trading on NASDAQ under the symbol \"CDZIA\" within 30 business days of the closing date of this offering, if approved. \nDividends on the Series A Preferred Stock underlying the depositary shares will be paid when declared by the Board at a fixed rate of 8.875% with liquidation preference equivalent to $25.00 per depositary share. In connection with the offering, the Company has granted the underwriters a 30-day option to purchase up to an additional 300,000 depositary shares. \nThe Company expects to use the net proceeds from this offering together with the proceeds from a new $50 million senior secured term loan expected to be entered into concurrently with the closing of the offering to (i) repay principal and interest outstanding under the Company's existing credit facility, (ii) fund the segregated dividend account and (iii) pay transaction related expenses. Any remaining net proceeds may be used for working capital needs and for other general corporate purposes. \nB. Riley Securities, Inc., Boenning & Scattergood, Inc., Ladenburg Thalmann & Co. Inc., William Blair & Company and Incapital LLC are acting as joint book-runners for this offering. Aegis Capital Corp. and B.C. Ziegler & Company are acting as co-managers for this offering. \nThe offering of these securities is being made under the Company's shelf registration statement on Form S-3 (333-257159), which was initially filed with the Securities and Exchange Commission (\"SEC\") on June 17, 2021 and declared effective by the SEC on June 25, 2021. The offering of these depositary shares will be made only by means of a prospectus and prospectus su...