10 Nov CADIZ INC. ANNOUNCES $10 MILLION DIRECT PLACEMENT LED BY LARGEST INVESTORS
Heerema International Group Services Leads Investment
LOS ANGELES, November 10, 2022 — 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
“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.”
The 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.
In 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.
In addition to infrastructure investments to expand wellfield capacity, net cash proceeds from this offering are intended to be used to scale deployment of ATEC’s systems beginning in first quarter of 2023 and for working capital as needed.
The Offering is expected to close on November 14, 2022, subject to customary closing conditions. Since this Offering is being made without an underwriter or a placement agent, the Company will not be paying any underwriting discounts or commissions in connection with the Offering.
The Offering is made pursuant to a shelf registration statement (File No. 333-257159) that was previously filed with the U.S. Securities and Exchange Commission (the “SEC”) and declared effective by the SEC on June 25, 2021. A prospectus supplement, which contains additional information relating to the Offering, will be filed with the SEC and will be available on 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 any of the securities described herein. There shall not be any offer, solicitation of an offer to buy, or sale of securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Heerema IGS
The Heerema companies deliver solutions and create sustainable value on projects within the offshore energy industry. Heerema manages the entire supply chain of marine project execution, offering solutions that include design and front-end engineering, planning, logistics, project management, and the execution of sustainable projects worldwide. Heerema owns and operates 3 of the world’s five heavy lift sea vessels, which are equipped with zero-emissions technologies. Heerema is on a mission to make the impossible possible offshore as the leading renewable energy marine contractor. Since 2020, Heerema has been recognized as Carbon Neutral. To learn more about Heerema, please visit: https://www.heerema.com