Cadiz Inc. entered into a definitive agreement with Lytton Rancheria of California to receive up to $51 million in financing for its Mojave Groundwater Bank project, the company’s largest groundwater storage initiative in the Southwest.
The $51 million is structured as an unsecured loan with an 8 % annual interest rate, payable quarterly in cash or common shares, and a maturity of 66 months, extendable up to 60 months. The loan is convertible into membership interests in Mojave Water Infrastructure Company, LLC (MWI) on the same economic terms as other equity investors. Initial proceeds of approximately $15 million will reimburse development expenses, with subsequent draws earmarked for equipment deposits required for 2026 construction.
The agreement follows a November 2024 letter of intent and is part of Cadiz’s broader effort to raise up to $450 million in equity capital for the project. Cadiz will issue 600,000 shares of common stock as a commitment fee and 25,000 shares per $1 million funded on each draw, underscoring the company’s commitment to securing the necessary capital.
The Lytton investment is the first tranche of a total equity raise of up to approximately $450 million, with Cadiz completing due diligence with private equity investors for an additional $400 million in equity investment into MWI.
The Mojave Groundwater Bank is expected to provide 2.5 million acre‑feet of new water supply, equating to 50,000 acre‑feet per year over 50 years, and will include 1 million acre‑feet of underground storage capacity and a pipeline network spanning over 350 miles connecting the Colorado River and California Aqueducts.
Cadiz’s NASDAQ ticker is CDZI. The project is being overseen by Stantec Inc., appointed as Owner’s Engineer in February 2025.
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