Cadiz Signs Letter of Agreement with a Lead Investor for an Investment of up to $175 Million in Mojave Groundwater Bank Project

Core Points - Cadiz, Inc. has entered into a Letter of Agreement with a lead investor to invest up to $175 million in the Mojave Groundwater Storage Company, LLC for the construction and operation of the Mojave Groundwater Bank [1][2] - The total expected equity capital for the project, including contributions from the lead investor and other qualified investors, is projected to be up to$401 million [2] - Cadiz will transfer significant assets to the Mojave Groundwater Storage Company, including 100% ownership of the Northern Pipeline and 51% of the water storage rights in the Mojave Groundwater Bank, in exchange for approximately $51 million and additional funding for development [3] Investment Structure - The lead investor will act as the primary investor in the newly formed Mojave Groundwater Storage Company, with a focus on water infrastructure projects [2] - A special purpose entity, East Mojave Water Company, LLC, has been established to manage the Mojave Groundwater Storage Company, prioritizing profit distribution to investors until they achieve an annual yield of 7.5% [4] - The LOA does not create binding obligations until definitive agreements are executed, which will require shareholder approval from the lead investor [5] Company Overview - Cadiz is a California-based water solutions company with 45,000 acres of land, 2.5 million acre-feet of water supply, and 220 miles of pipeline assets [7] - The company aims to provide access to clean and reliable water through a combination of water supply, storage, pipeline, and treatment solutions, addressing the impacts of climate change on water access [7]