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Cadiz - CDZI STOCK NEWS

Welcome to our dedicated page for Cadiz news (Ticker: CDZI), a resource for investors and traders seeking the latest updates and insights on Cadiz stock.

Overview of Cadiz Inc.

Cadiz Inc. (NASDAQ: CDZI) is a California water solutions company that specializes in the development and management of renewable water resources. With a core focus on groundwater banking, sustainable water management, and water supply and storage, the company acquires vast land holdings endowed with significant water resources, turning these assets into integrated solutions for water conservation, agricultural development, and environmental management. Operating through a dual-segment approach involving Land and Water Resources and its subsidiary ATEC Water Systems, Cadiz is positioned to address critical challenges in water access, particularly in arid regions of Southern California.

Business Model and Operational Strategy

At its heart, Cadiz Inc. leverages its large portfolio of land to develop a series of interrelated water management projects. The company’s primary project, the Cadiz Valley Water Conservation, Recovery and Storage Project, aims to capture billions of gallons of groundwater that would otherwise be lost to evaporation. By actively managing its groundwater aquifer system, Cadiz seeks to create an efficient and reliable water storage mechanism that serves multiple community needs, from residential consumption to industrial use.

Cadiz generates revenue and enhances its market position through a diversified approach:

  • Water Supply and Storage: The company develops extensive groundwater banking systems that capture and conserve precious water resources, making them available to water agencies and public partners.
  • Pipeline Infrastructure: With an expansive network of pipelines, including a recently developed Northern Pipeline that spans over 220 miles, Cadiz is uniquely positioned to deliver water to communities across Southern California.
  • Water Treatment and Filtration: Through its subsidiary ATEC Water Systems, Cadiz offers state-of-the-art water treatment solutions designed to remove common contaminants such as iron, manganese, arsenic, and other constituents, ensuring clean and reliable water quality for a wide range of consumers.
  • Land Conservation and Organic Agriculture: The company’s properties in the eastern Mojave Desert not only support water projects but also provide a conducive environment for organic farming and land conservation initiatives.

Innovative Water Management Solutions

Cadiz’s integrated approach to water resource development is anchored in the concept of maximizing available water supplies while mitigating the environmental impacts of traditional water use. The Cadiz Valley Project exemplifies this by utilizing a series of sophisticated engineering techniques to capture groundwater before it evaporates. This not only ensures that water is conserved but also helps in recharging local aquifers, thereby supporting long-term sustainability in water-scarce regions.

The company’s water treatment arm, run through its subsidiary ATEC Water Systems, leverages breakthrough filtration technologies that are both scalable and cost-effective. With systems customized for different capacities—from urban municipalities to rural communities—ATEC’s solutions have been deployed at hundreds of locations, addressing issues ranging from discolored water to significant public health concerns tied to water contaminants.

Strategic Partnerships and Market Position

Another significant pillar of Cadiz's business is its network of strategic partnerships with public sector entities, local water agencies, and private investors. These collaborations are designed to enhance the capacities of local water systems and reduce dependency on traditional water sources, such as those from the State Water Project or imported supplies. Key collaborations include agreements with cities and water districts in the Mojave Desert and Inland Empire, where Cadiz’s reliably conserved water is integral to meeting regulatory and consumer demand.

The company’s commitment to secure water supply is further evidenced by its repeated engagement in infrastructure projects with long-term contractual frameworks. These contracts allow water agencies to secure a stable water source at cost-effective terms, which in turn supports robust financing of large-scale pipeline and storage projects.

Technology, Infrastructure, and Environmental Stewardship

Cadiz’s dual focus on technology and infrastructure innovation establishes it as a key player in the evolving water solutions sector. On the technology side, the company has invested in advanced water treatment filtration technologies that are recognized for their efficiency and scalability. The in-line treatment systems developed by ATEC utilize proprietary filter media processes to remove contaminants by adsorption, making them suitable for varied applications ranging from small community water systems to expansive industrial uses.

In parallel, the firm’s commitment to environmental stewardship is reflected in its investments in land conservation. By preserving over 45,000 acres of land in biologically diverse regions of California, Cadiz not only safeguards water resources but also supports organic agriculture and wildlife conservation. Its initiatives in managing the largest desert tortoise land conservation bank in the state further highlight its integrated approach to environmental management.

Comprehensive Infrastructure Development

Infrastructure is at the core of Cadiz’s operational strategy. The company owns and manages a significant pipeline network that spans hundreds of miles, connecting its groundwater banks to communities in need of reliable water supply. This network is crucial for the delivery of conserved water and serves as a backbone for the company’s broader agenda of water security in Southern California. In addition to its pipelines, Cadiz is actively involved in repurposing legacy infrastructure assets, such as the acquisition of steel pipe assets from the terminated Keystone XL Pipeline Project, repurposing them for water transportation needs. This innovative reuse of existing infrastructure not only accelerates project timelines but also serves as a model for sustainable infrastructure management.

Rhea-AI Summary

Cadiz Inc. (NASDAQ: CDZI) announced the closure of a $50 million senior secured credit facility, part of a larger $107.5 million financing package aimed at reducing debt and funding asset development. The new facility lowers debt from a previous 9.5% to 7%, extending the maturity to July 2024. Proceeds will also cover a senior secured term loan and provide working capital. The company has over $25 million in cash for operations and $10 million allocated for upcoming dividends on its Series A Preferred Stock. This supports Cadiz's mission to address California's water resource challenges.

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Cadiz Inc. (NASDAQ: CDZI) announced the completion of its acquisition of the 220-mile Northern Pipeline for $19 million. This pipeline, which extends from California's Central Valley to Cadiz Ranch, is designed to convey up to 30,000 AFY of water, addressing California's growing water supply challenges. The acquisition aims to enhance water access for underserved communities and improve water transportation infrastructure. Cadiz's CEO highlighted the company's commitment to alleviating water access issues, particularly in disadvantaged areas of California.

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Cadiz Inc. (NASDAQ: CDZI) announced a public offering of 2,000,000 depositary shares, priced at $25.00 each, raising gross proceeds of $50 million. The offering expects to close by July 2, 2021. Each depositary share corresponds to a fractional interest in the Company's 8.875% Series A Cumulative Perpetual Preferred Stock, which will trade under the symbol CDZIA. Proceeds will repay existing debts and fund dividends. The offering is underwritten by multiple financial institutions and follows a shelf registration statement approved by the SEC.

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Cadiz Inc. (NASDAQ: CDZI) announced a public offering of 2,000,000 depositary shares, each representing a 1/1000th interest in its Series A Cumulative Perpetual Preferred Stock, aiming to raise $50 million in gross proceeds. The Company plans to allocate the net proceeds to repay outstanding debt, fund a segregated dividend account, and cover other corporate expenses. A new $50 million secured term loan is also expected to close alongside the offering. B. Riley Securities and others are acting as joint bookrunners for this offering.

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Cadiz Inc. (NASDAQ:CDZI) has released the Spring 2021 issue of its quarterly newsletter, CDZI Magazine, highlighting significant company developments. CEO Scott Slater reported the flourishing of over 2,000 acres of crops at Cadiz Ranch while emphasizing the company's commitment to addressing California's water crisis through sustainable practices. Cadiz, which owns 70 square miles of water resources in Southern California, is working on the Cadiz Water Project, set to provide water supply for 400,000 people and enhance groundwater storage capacity. For more details, visit cadizinc.com.

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SoCal Hemp JV LLC has renewed its partnership with Victor Valley College to advance research in desert hemp farming and product marketing. This collaboration aims to support students and explore innovative agricultural techniques, including irrigation methods suited for the Mojave Desert. The initiative continues through 2022, focusing on the cultivation, processing, and commercialization of hemp. SoCal Hemp, a joint venture between Cadiz and Glass House Farms, enhances local agricultural education and contributes to the understanding of hemp's potential in California's economy.

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Cadiz Inc. (NASDAQ: CDZI) released a statement on unusual trading activity preceding lawsuits filed against the U.S. Bureau of Land Management regarding water rights permits for its 220-mile pipeline project in California. CEO Scott Slater expressed concern over this trading activity, indicating the company is evaluating the situation with third parties. Despite the legal challenges, Cadiz affirmed that its business plan to supply and manage water resources for California communities is on track.

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Cadiz Inc. (NASDAQ: CDZI) has appointed Susan Kennedy to its Board of Directors, effective immediately. With over 30 years of experience, including roles as Commissioner of the California Public Utilities Commission and founder of renewable energy firm Advanced Microgrid Solutions, Kennedy's expertise will support Cadiz's commitment to sustainable water solutions in California. This leadership change follows the retirement of long-serving Board members Murray Hutchison and Richard Nevins. Kennedy will serve on the Compensation and Corporate Governance Committees as the company strives to expand its agricultural and water projects.

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Cadiz Inc. (NASDAQ: CDZI) announced on March 23, 2021, that two lawsuits have been filed against the U.S. Bureau of Land Management’s permit grants for the company’s Cadiz Water Project. The lawsuits, from environmental groups, aim to obstruct the use of an existing 217-mile pipeline for water conveyance in California’s underserved areas. Cadiz asserts its commitment to augment California's water supply amid ongoing droughts, highlighting past legal victories against similar challenges. The company believes these recent lawsuits lack merit and will continue working to repurpose the pipeline for water access.

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Cadiz Inc. (NASDAQ: CDZI) emphasizes the urgent need for innovative water solutions in response to California's ongoing drought, affecting over 1 million residents lacking reliable access to clean water. The company highlights its unique position to address the state's water supply needs through the Cadiz Water Project, which aims to create new water resources for 400,000 people annually and store up to 1 million acre-feet of water. Cadiz is acquiring a 220-mile pipeline to enhance California's water conveyance network, aiming to assist rural communities and promote sustainable water management.

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FAQ

What is the current stock price of Cadiz (CDZI)?

The current stock price of Cadiz (CDZI) is $3.64 as of March 7, 2025.

What is the market cap of Cadiz (CDZI)?

The market cap of Cadiz (CDZI) is approximately 268.9M.

What is the core business of Cadiz Inc.?

Cadiz Inc. focuses on renewable water resource development, including groundwater banking, water treatment, pipeline infrastructure, and land conservation. Its projects are designed to provide reliable water supplies and support sustainable water management in California.

How does Cadiz Inc. conserve water?

Cadiz employs advanced techniques to capture groundwater that would typically be lost to evaporation. Its Cadiz Valley Water Conservation, Recovery and Storage Project emphasizes efficient aquifer management and water banking, ensuring water is conserved and available for various uses.

What role does ATEC Water Systems play in the company?

ATEC Water Systems, a wholly owned subsidiary of Cadiz Inc., specializes in water treatment and filtration solutions. It designs scalable systems to remove contaminants such as iron, manganese, and arsenic, thereby ensuring clean and safe water for communities and industrial applications.

What is groundwater banking and why is it important?

Groundwater banking involves capturing and storing surplus water in underground aquifers, reducing losses from evaporation and ensuring a sustainable water supply. This process is vital for arid regions like Southern California, where water scarcity is a significant challenge.

How does Cadiz contribute to environmental sustainability?

Cadiz contributes to sustainability by conserving large tracts of land, managing water resources responsibly, and supporting organic agriculture. Its initiatives in land conservation and efficient water management help reduce environmental impact while ensuring long-term water availability.

What are some key infrastructure projects undertaken by Cadiz?

Key projects include the development of the Cadiz Valley Water Project, extensive pipeline networks for water delivery, and the repurposing of existing infrastructure such as steel pipe assets for water transportation. These projects play a critical role in establishing reliable water supply chains across California.

How does Cadiz partner with local communities and agencies?

Cadiz enters into strategic agreements with various water districts and local agencies to supply conserved water. These partnerships help enhance local water infrastructure, reduce dependency on imported water, and align with regional conservation and regulatory goals.

What differentiates Cadiz Inc. from other companies in the water sector?

Cadiz stands out due to its integrated business model that combines land acquisition, groundwater banking, pipeline development, and advanced water treatment technology. This comprehensive approach, along with its focus on renewable resources and environmental conservation, positions it uniquely within the competitive water solutions industry.
Cadiz

Nasdaq:CDZI

CDZI Rankings

CDZI Stock Data

268.87M
47.48M
36.8%
44.03%
7.59%
Utilities - Regulated Water
Water Supply
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United States
LOS ANGELES