Global Water Completes $32.2 Million Public Offering of Common Stock; Underwriters Exercise Full Over-Allotment Option

Rhea-AI Summary

Global Water Resources (NASDAQ: GWRS) has successfully completed a public offering of 3,220,000 shares of common stock at $10.00 per share, including 420,000 shares from the fully exercised over-allotment option. The offering generated gross proceeds of approximately $32.2 million before deducting underwriting costs and expenses.

Notable participation came from existing stockholders, including directors and affiliates, who purchased 1,439,200 shares. The company plans to use the net proceeds for acquisitions, working capital, and general corporate purposes. Roth Capital Partners and Janney Montgomery Scott served as underwriters for the offering, which was conducted under a previously filed Form S-3 registration statement.

Positive

• Significant insider participation with 1,439,200 shares purchased by existing stockholders and directors
• Full exercise of over-allotment option indicates strong demand
• Successful capital raise of $32.2 million strengthens balance sheet
• Proceeds earmarked for acquisitions suggests growth strategy

Negative

• Potential dilution for existing shareholders
• Stock offering price of $10.00 may represent a discount to market price

Insights

Financial Analyst

Global Water Resources has successfully completed a $32.2 million public offering of 3.22 million shares at $10.00 per share, with underwriters exercising their full over-allotment option of 420,000 shares. This represents a substantial capital infusion for a company with a $242 million market cap, effectively increasing their available capital by approximately 13%.

The strong insider participation is particularly noteworthy, with existing stockholders including directors and/or their affiliates purchasing 1.44 million shares, representing about 45% of the total offering. This significant insider commitment signals confidence in the company's direction and reduces concerns about dilution.

The offering price of $10.00 represents only a minimal discount to the current market price of $10.08, indicating healthy market demand without requiring deep discounts to attract investors. The full exercise of the over-allotment option further validates this market confidence.

Management's stated intention to use proceeds for acquisitions positions GWRS to execute on growth opportunities in the water resource management sector. For a utility-like business, external growth through acquisition is often a key expansion strategy due to the regulated nature of the industry.

While the offering does create some dilution for existing shareholders who didn't participate, the relatively tight pricing and clear growth-oriented use of proceeds mitigates these concerns. The company now has significantly enhanced financial flexibility to pursue its strategic objectives without substantially increasing its debt burden.

PHOENIX, March 27, 2025 (GLOBE NEWSWIRE) -- Global Water Resources, Inc. (NASDAQ: GWRS), a pure- play water resource management company, today announced that it completed a public offering of 3,220,000 shares of its common stock at a previously disclosed price of $10.00 per share, which includes 420,000 shares issued and sold to the underwriters who exercised in full the option to purchase additional shares of common stock. Certain existing stockholders, including certain directors and/or their affiliates, purchased an aggregate of 1,439,200 shares of common stock in the offering.

The gross proceeds to the company from the offering are approximately $32.2 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 and Janney Montgomery Scott acted as underwriters for the offering.

The offering was made pursuant to a registration statement on Form S-3 that was previously filed with the Securities and Exchange Commission (SEC) and declared effective on August 31, 2023. 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, or from Janney Montgomery Scott, 60 State Street, 13^th Floor, Boston, MA 02109, prospectus@janney.com, (617) 557-2986.

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. 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, 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

How much did Global Water Resources (GWRS) raise in their March 2025 public offering?

Global Water Resources raised $32.2 million in gross proceeds through the offering of 3,220,000 shares at $10.00 per share.

What is the purpose of GWRS's $32.2 million stock offering?

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

How many shares did insiders purchase in GWRS's March 2025 offering?

Existing stockholders, including directors and affiliates, purchased 1,439,200 shares in the offering.

What was the price per share for GWRS's March 2025 public offering?

The shares were offered at $10.00 per share.