Cadiz (CDZI) said Monday it is selling 7 million common shares in a registered direct offering at $3.34 per share for gross proceeds of about $23.4 million.

The company said its largest shareholder, Heerema International Group Services, participated in the offering, keeping a roughly 34% stake in Cadiz.

The offering is expected to close on or about Tuesday, Cadiz said.

The company said it plans to use the net proceeds to advance development of its water supply and groundwater banking project.

Cadiz said the proceeds may also be used for wellfield infrastructure-related equipment and materials, business development activities, other capital expenditures, working capital, expansion of the business and acquisitions, and general corporate purposes.

Price: 3.51, Change: +0.01, Percent Change: +0.29