By Chris Wack
Cadiz shares were down 5.3% to $3.75 after the company entered into a placement-agent agreement for the purchase and sale of about 5.7 million shares in a registered direct offering at $3.50 a share.
The proceeds to the Los Angeles water-services company from the offering are expected to be $20 million, before deducting the placement agent's fees and other offering expenses payable by the company.
The offering is expected to close with institutional investors on or about Monday.
The company intends to use the proceeds for capital and other expenses related to the development and construction of its groundwater banking project in the Mojave Desert. Proceeds may also be used for the equipment and materials related to wellfield infrastructure on land owned by the company, business development activities, other capital expenditures, working capital, the expansion of the business and acquisitions and general corporate purposes, Cadiz said.
The stock hit its 52-week high of $5.68 on Jan. 13, and is up 33% in the past 12 months.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
March 07, 2025 09:52 ET (14:52 GMT)
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