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PHOENIX - Global Water Resources, Inc. (NASDAQ: GWRS), a company specializing in water resource management with a market capitalization of $248 million, announced the initiation of a public offering of its common stock. The company, currently trading near its 52-week low of $10.20 compared to its high of $13.98, is initiating this offering amid challenging market conditions. The entire offering consists of shares sold by the company. Furthermore, Global Water Resources may give the underwriters a 30-day option to buy up to an additional 15% of the common stock at the public offering price, minus underwriting discounts and commissions.
The completion and terms of the offering depend on market conditions, and there is no certainty as to the outcome or the specifics of the offering. The company plans to allocate the net proceeds towards funding acquisitions, working capital, and general corporate purposes.
Roth Capital Partners and Janney Montgomery Scott are serving as the underwriters for this offering. The offering is based on a registration statement on Form S-3 filed with the Securities and Exchange Commission (SEC) and declared effective as of August 31, 2023. The terms of the offering will be detailed in a preliminary prospectus supplement and accompanying base prospectus, which will be filed with the SEC and made available on its website.
The final details of the offering will be outlined in a final prospectus supplement to be filed with the SEC. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor will there be any sale of these securities in any jurisdiction where such offer, sale, or solicitation would be unlawful before registration or qualification under the securities laws of that jurisdiction.
Global Water Resources owns and operates 32 systems that provide water, wastewater, and recycled water services, primarily in the growth corridors around metropolitan Phoenix and Tucson, Arizona. The company recycles over 1 billion gallons of water annually and maintains impressive gross profit margins of 74%. According to InvestingPro analysis, the company has demonstrated consistent performance with annual revenue of $52.7 million, though its current ratio of 0.87 suggests some liquidity challenges. For deeper insights into Global Water Resources’ financial health and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, available for over 1,400 US stocks.
Some statements in this press release are forward-looking and involve risks and uncertainties that could cause actual results to differ. These include the possibility of the public offering not being completed as expected or at all. Based on InvestingPro metrics, the stock currently trades at a P/E ratio of 42.8 and offers a dividend yield of 2.84%. The company has indicated that it will not provide updates or revisions to any forward-looking statements in light of new information or future events. This news article is based on a press release statement.
In other recent news, Global Water Resources reported its fourth-quarter 2024 earnings, which showed a slight miss on earnings per share (EPS) expectations, recording $0.04 compared to the projected $0.06. However, the company exceeded revenue forecasts, achieving $13.29 million against the anticipated $12.7 million. For the full year of 2024, Global Water Resources reported total revenue of $52.7 million, marking a 0.6% decline from the previous year, primarily due to non-recurring revenue from infrastructure agreements in 2023. Despite this, regulated revenue increased by 4.9%, reflecting growth in active service connections.
Global Water Resources has also filed applications with the Arizona Corporation Commission for potential water and wastewater rate increases, which could result in an annual revenue boost of approximately $6.5 million if approved. The company is proposing these new rates be implemented in two phases, starting in May 2026. Additionally, the Arizona Corporation Commission has approved Global Water Resources’ acquisition of assets in Tucson, aiming to expand its customer base from 5,000 to 7,000 connections in the region. These developments are part of the company’s ongoing strategic initiatives to enhance its infrastructure and service capabilities.
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