Cadiz, Inc. (NASDAQ: CDZI) Announces 50-Year Water Delivery Partnership to Drive Expansion

Cadiz, Inc. (NASDAQ: CDZI) has solidified its position in the water solutions market by entering into a landmark 50-year water delivery partnership with the Santa Margarita Water District (SMWD). This agreement, which was unanimously approved by SMWD's board of directors, is a pivotal development for Cadiz, ensuring a stable revenue stream and supporting its ambitious infrastructure projects.

Founded in 1983, Cadiz, Inc. has a mission to provide clean, reliable, and affordable water solutions. The company's extensive operations span 45,000 acres of land, 2.5 million acre-feet of water supply, and 220 miles of pipeline assets. This new partnership will see Cadiz deliver 5,000 acre-feet per year (AFY) to groundwater banks along its Northern Pipeline, in exchange for water that SMWD can obtain from State Water Contractors and local suppliers. The price per acre-foot, inclusive of all costs, will not exceed $1,650.

Cadiz's strategic initiatives and financial stability are underscored by several recent developments. The acquisition of ATEC Water Systems, LLC, a leader in water filtration solutions, highlights the company's commitment to addressing groundwater contamination. ATEC's notable projects include a $5.2 million contract in Gresham, Oregon, aimed at reducing reliance on imported surface water and improving local water quality.

Financially, Cadiz has bolstered its position through significant financing agreements. On March 15, 2024, the company secured a $41.2 million deal with Heerema International Group Services BV, extending its debt maturity to 2027. This was followed by another financing transaction led by Heerema International Group Services SA on April 25, 2024, enhancing Cadiz's liquidity and supporting its growth strategy.

Key projects such as the Solomon Hills development, in partnership with Solstra Communities California LLC, exemplify Cadiz's role in addressing urgent housing needs in California. This project aims to deliver 1,275 AFY of water to support over 4,000 homes for military and working families along the Central California coast. Additionally, collaborations with Fenner Gap Mutual Water Company and the Victor Valley Wastewater Reclamation Authority in San Bernardino County aim to integrate recycled water from wastewater treatment plants, improving groundwater quality and supply efficiency.

The partnership with SMWD is particularly notable as it signifies a major milestone for Cadiz. Susan Kennedy, Chairman and CEO of Cadiz, stated, "Santa Margarita's agreement to take delivery of water via the Northern Pipeline will help us meet an aggressive construction schedule to have the pipeline online in 2026." Frank Ury, an SMWD board member, emphasized the importance of diversifying water supply portfolios and reducing dependence on the Colorado River and State Water Project resources.

Looking ahead, Cadiz is poised for significant growth, transforming from a land and water asset company to a prominent player in the global water industry. The company's aquifer system in the eastern Mojave Desert, estimated to hold 30-50 million acre-feet of water, provides a crucial resource in a region facing severe water scarcity. By leveraging strategic infrastructure such as pipelines and right-of-ways, Cadiz aims to operate one of the largest water banks in the world.

Cadiz's initiatives aim to bolster water security and address the escalating demand for resilient water management solutions amid climate variability. With a robust portfolio and a clear vision for the future, Cadiz offers a compelling opportunity for potential investors and is shaping the future of water management in a rapidly changing world.

For more information, visit the company's website at http://razorpitch.com or view the source version on newsdirect.com.