Global Water Completes $15.5 Million Public Offering of Common Stock; Underwriter Exercises Full Over-Allotment Option

Rhea-AI Summary

Global Water Resources, Inc. (NASDAQ: GWRS) announced the completion of a public offering of 1,150,000 shares at $13.50 per share, generating gross proceeds of approximately $15.5 million. The offering included 150,000 shares sold to the underwriter, Roth Capital Partners, who exercised their full option for additional shares. The net proceeds will be used for acquisitions, working capital, and general corporate purposes. This offering was made under a previously filed registration statement that is effective with the SEC.

Positive

• Gross proceeds of approximately $15.5 million will support acquisitions and working capital.
• The offering is expected to enhance the company’s growth potential in water resource management.

Negative

• Issuance of additional shares may lead to shareholder dilution.

PHOENIX, Aug. 01, 2022 (GLOBE NEWSWIRE) -- Global Water Resources, Inc. (NASDAQ: GWRS), a pure-play water resource management company, today announced that it completed a public offering of 1,150,000 shares of its common stock at a previously disclosed price of $13.50 per share, which includes 150,000 shares issued and sold to the underwriter who exercised in full its option to purchase additional shares of common stock. The gross proceeds to the company from the offering are approximately $15.5 million before deducting underwriting discounts and commissions and estimated offering expenses payable by the company. The company anticipates using the net proceeds from the offering to fund acquisitions and for working capital and other general corporate purposes.

Roth Capital Partners acted as sole manager for the offering.

The offering was made pursuant to a registration statement on Form S-3 that was previously filed with and declared effective by the Securities and Exchange Commission (SEC) on August 14, 2020. A final prospectus supplement and accompanying base prospectus relating to and describing the final terms of the offering is available on the SEC’s website at www.sec.gov. Copies of the final prospectus supplement and accompanying base prospectus relating to the offering may be obtained from Roth Capital Partners, 888 San Clemente Drive, Suite 400, Newport Beach, CA 92660; (800) 678-9147.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Global Water Resources

Global Water Resources, Inc. is a leading water resource management company that owns and operates 25 systems which provide water, wastewater, and recycled water services. The company’s service areas are located primarily in growth corridors around metropolitan Phoenix. Global Water recycles over 1 billion gallons of water annually.

Forward-Looking Statements

Certain of the statements made in this press release are forward-looking, such as those, among others, relating to the company’s expectations regarding its anticipated use of net proceeds from the offering. Actual results or developments may differ materially from those projected or implied in these forward-looking statements. Factors that may cause such a difference include risks and uncertainties faced by the company contained in the final prospectus supplement filed with the SEC and the documents incorporated by reference therein, which include the company’s Annual Report on Form 10-K for the year ended December 31, 2021, and the company’s Quarterly Report Form 10-Q for the period ended March 31, 2022. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Company Contact:
Michael J. Liebman
SVP and CFO
Tel (480) 999-5104
mike.liebman@gwresources.com

Investor Relations:
Ron Both, CMA
Tel (949) 432-7566
GWRS@cma.team

FAQ

What is the total amount raised by Global Water Resources in their recent offering?

Global Water Resources raised approximately $15.5 million in their recent public offering.

How many shares were offered by Global Water Resources in the public offering?

Global Water Resources offered 1,150,000 shares of common stock in the public offering.

What will the proceeds from the GWRS offering be used for?

The proceeds will be used for acquisitions, working capital, and other general corporate purposes.

Who managed the public offering for Global Water Resources?

Roth Capital Partners acted as the sole manager for the public offering.

What is the impact of the recent offering on GWRS shareholders?

The offering may lead to shareholder dilution due to the issuance of additional shares.