CDZI - Cadiz to raise $12M in equity investment through stock offering

Cadiz (NASDAQ:CDZI) trades 10.9% down premarket after it entered into a definitive securities purchase agreement for a registered direct offering of 6.86M shares at $1.75/share for total proceeds of $12M. Offering is led by its largest equity shareholder Heerema International along with company founder and board member Keith Brackpool (invested $2.5M) and affiliates of the company's senior secured lender, B. Riley Securities ($3.5M investment). Offer proceeds 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. Heerema IGS,international offshore energy and sustainable solutions company, anchored the offering with an investment of $5M; post the offering, Heerema IGS will beneficially own 35.4% of the outstanding common stock. Offer is expected to close on Mar.23.

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Cadiz to raise $12M in equity investment through stock offering