Cadiz has agreed to raise about $21 million by selling 5 million shares of common stock to institutional investors in a registered offering. The deal is priced at $4.20 per share, and the company expects to receive about $20 million after fees and expenses.
The proceeds are intended to support corporate costs and the development of Cadiz’s Mojave Groundwater Bank Project, among other uses. The offering is expected to close around October 30, subject to customary conditions.
Key details
- Offering size and price: Cadiz will sell 5 million common shares at $4.20 each, for gross proceeds of approximately $21 million.
- Net proceeds: The company expects to receive about $20 million after placement-agent fees and transaction expenses. Roth Capital Partners is acting as the exclusive placement agent.
- Planned uses of funds: Proceeds may cover corporate overhead and interest payments, as well as costs associated with developing and constructing the Mojave Groundwater Bank Project. Potential project spending includes equipment and materials for its northern and/or southern pipeline and wellfield infrastructure on company-owned land. Other possible uses include business development, working capital, other capital expenditures, business expansion, acquisitions and general corporate purposes.
- Closing: The sale is expected to close on or about October 30, 2026, provided customary closing conditions are met.
- Insider lockups: Cadiz’s directors and officers have agreed not to sell, transfer or otherwise dispose of company securities for 90 days without the placement agent’s prior written consent.
Investor implications
The financing brings in new capital but will increase the number of Cadiz shares outstanding, diluting existing shareholders’ ownership. The proceeds are designated for a broad range of corporate and project needs, rather than exclusively for construction of the Mojave Groundwater Bank Project.