Heerema to acquire $21.2 million Senior Secured Loan and provide the
Company an additional $20 million to
fund capital investments for revenue generation, operations and
growth.
LOS
ANGELES and GENEVA,
Feb. 21,
2024 /PRNewswire/ -- Cadiz, Inc. (NASDAQ: CDZI /
CDZIP, the "Company") and Heerema International Group Services BV
("Heerema"), the Company's largest shareholder, are pleased to
announce a new financing agreement to support growth and capital
investments in the Company's water supply, pipeline, filtration and
storage assets. Under the agreement, Heerema will acquire the
Company's $21.2 million Senior
Secured Loan held by BRF Finance Co., LLC, ("BRF") and provide the
Company an additional $20 million to
support capital investments and growth. The Maturity Date of the
combined $41.2 million Senior Secured
Loan will be extended to 6/30/2027. As part of the agreement,
the holders of the Company's existing $16
million Junior Convertible Loan have also agreed to extend
their Maturity Date to 6/30/27. Following the transaction, the
Company will have no debt due prior to 2027.
"Heerema's support has been the Company's most important
strategic asset," said Susan
Kennedy, Chairman and Chief Executive Officer of Cadiz. "Our
business transformation is on track and with Heerema's support,
Cadiz is in a strong position to continue executing against
strategic objectives and deliver value to shareholders on the
fastest possible timeframe."
"Heerema's vision is aligned with Cadiz in every respect, and we
believe in the Company's future," said Pieter Heerema. "Never before has there been
such an urgent need for large-scale investment in clean water
infrastructure. The problem is global, and we believe Cadiz's
solutions have regional and global application."
Cadiz is a clean water solutions company with 2.5 million
acre-feet of water supply, 1 million acre-feet of water storage
capacity and more than 200 miles of pipeline assets strategically
located in Southern California.
The Company also acquired water technology company ATEC Water
Systems in 2022, a producer of specialized groundwater filtration
systems.
The Heerema Group is one of world's largest and most respected
marine contractors in the renewable energy industry and a globally
known pioneer in decarbonization, sustainability and social
responsibility. Heerema has been providing solutions for some
of the world's most complex offshore energy projects since it was
founded in 1948. Today, Heerema is leading the clean energy
transition as a key supplier for the world's largest offshore wind
energy projects in the United
States, United Kingdom,
Taiwan and Germany. Heerema's commitment to Net-Zero GHG
emissions by 2050 has earned the company international
recognition. In 2020, Heerema became the first marine
contractor to become climate neutral by offsetting 100% of its
approximately 250.000 metric tons of emissions per year. Heerema's
Sustainability Roadmap includes introducing zero-emission
technologies, among which are carbon capture and storage onboard
their fleet of offshore crane vessels, and the use of alternative
fuels such as Hydrotreated Vegetable Oil (HVO) which has the
potential to reduce the carbon footprint in the shipping industry
(well-to-exhaust) by up to 80%. In 2023, Heerema won the
International Marine Contractor's Association Award for most
innovative offshore project for reducing noise pollution.
The additional $20 million in
capital to be provided by Heerema will carry a 7% PIK coupon and be
convertible into Cadiz common stock at a price of $5.30 per share. The transaction remains
subject to execution of definitive transaction documents and is
expected to be completed expeditiously.
About Cadiz, Inc.
Founded in 1983, Cadiz, Inc.
(NASDAQ: CDZI) is a California
water solutions company dedicated to providing access to clean,
reliable and affordable water for people through a unique
combination of water supply, storage, pipeline and treatment
solutions. With 45,000 acres of land in California, 2.5 million acre-feet of water
supply, 220 miles of pipeline assets and the most cost-effective
water treatment filtration technology in the industry, Cadiz offers
a full suite of solutions to address the impacts of climate change
on clean water access. For more information, please visit
https://www.cadizinc.com.
About Heerema
The Heerema companies deliver solutions
and create sustainable value on projects within the offshore energy
industry. Heerema manages the entire supply chain of marine project
execution, offering solutions that include design and front-end
engineering, planning, logistics, project management, and the
execution of sustainable projects worldwide. Heerema owns and
operates 3 of the world's five largest heavy lift sea vessels, two
are equipped with zero-emissions technologies. Heerema is on a
mission to make the impossible possible offshore as the leading
renewable energy marine contractor. To learn more about Heerema,
please visit: https://www.heerema.com .
FORWARD LOOKING STATEMENTS: This release contains
forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements include, but are not limited
to, the Company's ability to complete the expected financing
transaction with Heerema, and the ability of the Company to achieve
its strategic objectives with the proceeds of such financing, which
ability is subject to significant business, economic and
competitive risks and uncertainties, many of which are beyond the
control of the Company. Although the Company believes that the
expectations reflected in our forward-looking statements are
reasonable, it can give no assurance that such expectations will
prove to be correct. Factors that could cause actual results or
events to differ materially from those reflected in the Company's
forward-looking statements include our ability to reach definitive
agreements with Heerema and the existing lenders under the
Company's existing credit agreement, our strategic objectives may
take longer to realize than expected, we may experience delays in
the supply chain for materials or other factors detailed in the
Company's Securities and Exchange Commission filings. We undertake
no obligation to publicly update any forward-looking statement,
whether written or oral, that may be made from time to time,
whether as a result of new information, future developments or
otherwise.
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SOURCE Cadiz, Inc.