Global Water Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

Global Water Resources (NASDAQ: GWRS) has announced the launch of an underwritten public offering of its common stock shares. The pure-play water resource management company will be the sole offerer of the shares, with plans to grant underwriters a 30-day option to purchase up to an additional 15% of the offered shares at the public offering price, minus underwriting discounts and commissions.

The company intends to utilize the net proceeds for funding acquisitions, working capital, and other general corporate purposes. Roth Capital Partners and Janney Montgomery Scott are serving as the offering's underwriters. The offering will be conducted under a previously filed and effective Form S-3 registration statement dated August 31, 2023.

Positive

• Potential for strategic acquisitions and business expansion
• Strengthening working capital position

Negative

• Potential dilution of existing shareholders' value
• Uncertainty regarding offering size and terms
• Market-dependent completion risk

PHOENIX, March 25, 2025 (GLOBE NEWSWIRE) -- Global Water Resources, Inc. (NASDAQ: GWRS), a pure-play water resource management company, today announced that it has commenced an underwritten public offering of shares of its common stock. All of the shares are being offered by the company.

In addition, the company expects to grant the underwriters for the offering a 30-day option to purchase up to an additional 15% of the shares of common stock offered in the offering at the public offering price, less underwriting discounts and commissions. The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

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 and Janney Montgomery Scott are acting as underwriters for the offering.

The offering will be made pursuant to a registration statement on Form S-3 that was previously filed with the Securities and Exchange Commission and declared effective on August 31, 2023. A preliminary prospectus supplement and accompanying base prospectus relating to and describing the terms of the offering will be filed with the SEC and will be available on the SEC’s website at www.sec.gov.

Copies of the preliminary prospectus supplement and accompanying base prospectus relating to the offering may be obtained, when available, from Roth Capital Partners, 888 San Clemente Drive, Suite 400, Newport Beach, CA 92660, (800) 678-9147, or from Janney Montgomery Scott, 60 State Street, 13^th Floor, Boston, MA 02109, prospectus@janney.com, (617) 557-2986. The final terms of the offering will be disclosed in a final prospectus supplement to be filed with the SEC.

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 32 systems which provide water, wastewater, and recycled water services. The company’s service areas are located primarily in growth corridors around metropolitan Phoenix and Tucson, Arizona. The company 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 the completion, timing and size of the public offering, its expectations with respect to granting the underwriters a 30-day option to purchase additional shares and 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 related to completion of the public offering on the anticipated terms or at all, market conditions and the satisfaction of customary closing conditions related to the offering. More information about the risks and uncertainties faced by the company is contained in the preliminary prospectus supplement to be 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, 2024. 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 purpose of Global Water Resources (GWRS) new stock offering?

The stock offering's proceeds will be used to fund acquisitions, working capital, and other general corporate purposes.

Who are the underwriters for GWRS's 2025 public stock offering?

Roth Capital Partners and Janney Montgomery Scott are acting as underwriters for the offering.

What additional option is being offered to GWRS stock offering underwriters?

Underwriters will receive a 30-day option to purchase up to 15% additional shares at the public offering price, minus underwriting discounts and commissions.

When was GWRS's Form S-3 registration statement declared effective?

The Form S-3 registration statement was declared effective on August 31, 2023.