Investment Banking - Cadiz Inc.
Transactions | Water/Infrastructure/Environmental
Client: Cadiz Inc.
Transaction Type: Preferred Stock
Role: Book-Running Manager
Cadiz Inc. Completes $57.5 Million Offering of Depositary Shares
- Cadiz Inc. (NASDAQGM: CDZI) (the “Company”) is a natural resources development company committed to providing sustainable water and agricultural opportunities in California.
- On July 7, 2021, the Company announced the recent completion of its underwritten registered public offering (the “Offering”) of $57.5 million of 8.875% Series A Cumulative Perpetual Preferred Stock (the “Series A Preferred Stock”), represented by depositary shares.
- Each depositary share represents a 1/1000th fractional interest in a share of the Series A Preferred Stock. The Company’s depositary shares are expected to begin trading on the NASDAQ under the symbol “CDZIP” within 30 business days of the closing date of the Offering.
- The net proceeds from the Offering together with the proceeds from a new $50 million senior secured term loan were used 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. Remaining net proceeds will be used for working capital needs and for other general corporate purposes.
- Boenning & Scattergood served as a book-running manager in the transaction.