Artesian Resources Corporation Announces $15M Common Stock Offering

Artesian Resources Corporation ARTNA announced today that it has commenced an underwritten public offering of approximately $15 million of its Class A Non-Voting Common Stock. The offering is expected to close on or about July 20, 2011, subject to customary closing conditions. The Company has also granted the underwriters an option to purchase up to an additional 15 percent of the amount sold to cover over-allotments, if any. Robert W. Baird & Co. Incorporated is acting as sole book-running manager and Boenning & Scattergood, Inc. and J. J. B. Hilliard, W. L. Lyons, LLC are serving as co-managers. Artesian currently intends to use the entire net proceeds to fund a paid-in capital contribution in the same amount to its principal subsidiary, Artesian Water Company, Inc. (Artesian Water). Artesian Water intends to use the paid-in capital contribution to repay short-term borrowings incurred primarily to finance expenses associated with its construction program and to fund capital expenditures and other general corporate purposes. These proceeds are expected to reduce Artesian Water's debt to total capitalization ratio. In addition, Artesian may utilize proceeds from this offering to adjust capitalization ratios in its other regulated subsidiaries.