Cadiz Inc ( CDZI ). shares are trading lower Friday after the company announced a $20 million registered direct offering.

What To Know: The offering involves the sale of 5,715,000 shares of its common stock at $3.50 per share. The company expects to use the net proceeds for capital and other expenses related to the development and construction of its Mojave Groundwater Bank project.

This includes acquiring equipment and materials for the northern and southern pipelines, which are scheduled to begin construction in 2025. Additional funds may also support wellfield infrastructure, business development, and other general corporate purposes.

Roth Capital Partners, LLC is serving as the exclusive placement agent for the offering, which is expected to close on or around March 10, 2025, pending customary closing conditions.

The securities are being offered under a shelf registration statement filed with the SEC in August 2024.

CDZI Price Action: Cadiz shares were down 9.09% at $3.60 at the time of writing, according to Benzinga pro.

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