The York Water Company Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

York Water Company (NASDAQ: YORW) has priced an underwritten public offering of 975,600 shares of common stock at $41 per share, aiming for gross proceeds of approximately $40 million. The funds will be used for general corporate purposes, including a capital investment program, debt repayment, and potential acquisitions. Additionally, underwriters have a 30-day option to purchase 146,340 additional shares at the same price. The offering is made under an effective SEC registration statement.

Positive

• Gross proceeds expected to be approximately $40 million.
• Funds will support capital investment program and potential acquisitions.

Negative

• Shareholder dilution risk due to the stock offering.

YORK, Pa., April 01, 2022 (GLOBE NEWSWIRE) -- The York Water Company (“York Water” or the “Company”) (NASDAQ: YORW), a provider of water and wastewater utility services, announced today the pricing of its previously announced underwritten public offering of common stock. York Water priced an offering of 975,600 shares of its common stock at a price to the public of $41 per share. The aggregate gross proceeds from the offering are expected to be approximately $40 million, before deducting the underwriting discounts and commissions payable by York Water. York Water has granted the underwriters a 30-day option to purchase up to 146,340 additional shares of its common stock at the public offering price, less underwriting discounts, and commissions.

York Water intends to use the net proceeds from the offering for general corporate purposes, including our capital investment program, repayment of outstanding indebtedness, and potential acquisitions.

Janney Montgomery Scott is acting as sole book-running manager for the offering.

The offering is being made pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission (the “SEC”) on Form S-3 (Registration No. 333-259809).

The offering may be made only by means of a prospectus supplement and an accompanying prospectus. A preliminary prospectus supplement relating to the offering has been filed with the SEC. Copies of the preliminary prospectus supplement and the accompanying prospectus may be obtained by visiting EDGAR on the SEC’s website at www.sec.gov or from: Janney Montgomery Scott LLC, Attention: Equity Capital Markets Group, 60 State Street, Boston, MA 02109 or by email at prospectus@janney.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of any 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.

This news release may contain forward-looking statements regarding the Company’s operational and financial expectations. These statements are based on currently available information and are subject to risks, uncertainties, and other events which could cause the Company’s actual results to be materially different from the results described in this statement. The Company undertakes no duty to update any forward-looking statement. More information concerning forward-looking statements can be found in the Company’s SEC filings with the SEC at sec.gov.

FAQ

What is the price of the common stock offering by York Water Company?

The common stock offering is priced at $41 per share.

How many shares of common stock is York Water offering?

York Water is offering 975,600 shares of common stock.

What is the expected gross proceeds from the York Water stock offering?

The expected gross proceeds are approximately $40 million.

What will York Water do with the proceeds from the stock offering?

The proceeds will be used for general corporate purposes, including capital investments and debt repayment.

Is there an option for underwriters in the York Water offering?

Yes, underwriters have a 30-day option to purchase up to 146,340 additional shares.