Cadiz Inc. has sold 500,000 shares of common stock to existing shareholder Water Asset Management LLC, which increases that fund’s position in the company to about 8 percent.

The Los Angeles water resources company on Thursday said that the $4.5 million investment by Water Asset Management of New York, when combined with the proceeds of a direct private placement completed last week with affiliates of Altima Partners LLP of London, adds $11 million to available working capital for Cadiz.

Upon completion, the sales will increase Cadiz’s shares outstanding by 8.5 percent to nearly 15.4 million shares.

Cadiz owns 70 square miles of property in eastern San Bernardino County, on which it is developing underground water supply and storage, organic farming and solar energy projects. The money will help the company build out its projects.

“We believe that Cadiz’s significant water resources can be a critical addition to Southern California’s long term water supply needs and that the company’s management team has the vision and ability to ensure that its water project is implemented and operated in an environmentally and financially sound manner,“ said Matthew Diserio, Water Asset Management principal, in a statement.

Shares were down 8 cents, or less than 1 percent, to $9.26 in midday trading on the Nasdaq.