#USA #Los Angeles #Cadiz Inc #water solutions #Mojave Groundwater

Cadiz Inc. Secures Significant Financing for Water Solutions

On March 7, 2025, Cadiz Inc., a renowned California-based water solutions company, made headlines by announcing a substantial $20 million registered direct offering. This fundraising initiative is designed to support Cadiz's ambitious Mojave Groundwater Bank project, which aims to enhance the region's water supply amid growing concerns over water scarcity. This article delves deeper into the details of this financial move and its implications for both the company and the communities it aims to serve.

Details of the Offering

Cadiz Inc. revealed that they have entered a placement agent agreement to sell approximately 5,715,000 shares of their common stock at a price of $3.50 per share. This offering is expected to close with institutional investors around March 10, 2025, pending the fulfillment of typical closing conditions. The gross proceeds of approximately $20 million will be instrumental in funding the development and infrastructure enhancements linked to the Mojave Groundwater Bank project.

Objectives of the Fundraising

The primary use of the funds raised from this offering will be directed towards capital and operational expenses related to Cadiz's Mojave Groundwater Bank initiative. This project is particularly vital as it seeks to address the challenges posed by climate change and the corresponding need for sustainable water access. Key allocations from the funds will include:

• - Acquisition of Equipment: Funding will be utilized for purchasing necessary equipment and materials to facilitate the construction of the project’s infrastructure.
• - Pipeline Development: Investments are planned for constructing new pipeline networks, including both northern and southern pipeline projects anticipated to commence in 2025.
• - Wellfield Infrastructure: The funding will also support the development of wellfield infrastructure across lands owned by Cadiz and its subsidiaries.
• - Business Expansions: The proceeds may further be geared toward developing additional business ventures, capital expenditures, and general corporate growth.

Strategic Importance of the Mojave Groundwater Bank

The Mojave Groundwater Bank represents a strategic initiative by Cadiz Inc. aimed at improving water reliability and access in Southern California. With over 45,000 acres of land, the company is well-positioned to operate a safe and efficient groundwater banking system. This project not only seeks to enhance local water resources but also acts as a buffer against the increasing water crises fueled by climate changes.

Role of Roth Capital Partners

Roth Capital Partners, LLC, is providing exclusive placement agent services for this financing effort. This partnership is crucial for Cadiz as they navigate the complexities of raising necessary capital while maintaining compliance with regulatory requirements.

Transparency and Regulatory Compliance

The offering is conducted under the governance of applicable securities regulations, emphasizing transparency and regulatory compliance. Cadiz has filed a shelf registration statement with the SEC, ensuring that all proceedings are in line with federal regulations, thereby safeguarding the interests of investors.

Conclusion

Cadiz Inc. continues to position itself as a leader in water solutions through strategic fundraising and innovative projects. The $20 million fundraising effort for the Mojave Groundwater Bank is a testament to its commitment to providing reliable and sustainable water resources for California's public and ecological needs. As the company progresses, stakeholders will keenly observe how this investment translates into tangible benefits for the disadvantaged regions in the Mojave Desert, reflecting Cadiz's vision for a water-secure future.