Cadiz extends agreement for $51M investment in Mojave Groundwater Bank

Cadiz (CDZI) has executed a definitive agreement with Lytton Rancheria of California, a federally recognized Native American tribe, providing for up to $51M of capital as the first tranche of financing for construction and development of the Mojave Groundwater Bank, the company’s water supply and groundwater storage project expected to be the largest groundwater bank in the Southwest. The agreement establishes the first tribal investment in the Project. Lytton’s investment represents the first tranche of up to approximately $450M in total equity capital being raised by the company through Mojave Water Infrastructure Company, the special-purpose entity formed by the company to construct, own, and operate the Project. Under the agreement, Cadiz may draw unsecured loan proceeds up to $51M to fund development and capital costs associated with the Project. Lytton’s $51M loan is convertible into membership interests in MWI on the same economic terms offered to other equity investors in MWI. Initial proceeds of approximately $15M are expected to reimburse the company for Project development expenses and additional draws are anticipated to fund deposits on equipment necessary for construction of Project facilities expected in 2026. The company is currently completing diligence with private equity investors for up to an additional $400M in equity investment into MWI. In connection with the agreement, Cadiz will issue 600K shares of common stock at closing as a commitment fee, and 25K shares of common stock per $1M funded on each draw.