Cadiz Inc. Signs Material Definitive Agreement

TL;DR

CADIZ signs a big deal, details TBD.

AI Summary

On March 13, 2024, Cadiz Inc. entered into a Material Definitive Agreement related to its water supply operations. The filing does not disclose specific details of the agreement or the counterparty involved, but it signifies a significant development for the company.

Why It Matters

This filing indicates a significant contractual development for Cadiz Inc., potentially impacting its water supply business and future revenue streams.

Risk Assessment

Risk Level: medium — The lack of specific details in the filing regarding the nature of the agreement and its financial implications introduces uncertainty.

Key Players & Entities

• CADIZ INC (company) — Registrant
• Delaware (jurisdiction) — State of incorporation
• March 13, 2024 (date) — Date of earliest event reported

FAQ

Key Financial Figures

• $0.01 — h registered Common Stock , par value $0.01 per sharef CDZI The NASDAQ Global Ma
• $1,450 — housand four hundred and fifty dollars ($1,450) per acre-foot year ("AFY") in 2024 dol
• $1,500 — d carry-over storage in the Project for $1,500 per AF and an annual management fee of
• $20 — per AF and an annual management fee of $20 per AF of acquired storage capacity. U
• $850 — Cadiz expects to receive net revenue of $850 per AFY, subject to annual inflation ad

Filing Documents

• cdzi20240313_8k.htm (8-K) — 41KB
• ex_639377.htm (EX-10.1) — 2KB
• exhibit_101page1.jpg (GRAPHIC) — 304KB
• exhibit_101page2.jpg (GRAPHIC) — 317KB
• exhibit_101page3.jpg (GRAPHIC) — 305KB
• exhibit_101page4.jpg (GRAPHIC) — 112KB
• 0001437749-24-007757.txt ( ) — 1624KB
• cdzi-20240313.xsd (EX-101.SCH) — 4KB
• cdzi-20240313_def.xml (EX-101.DEF) — 13KB
• cdzi-20240313_lab.xml (EX-101.LAB) — 18KB
• cdzi-20240313_pre.xml (EX-101.PRE) — 13KB
• cdzi20240313_8k_htm.xml (XML) — 5KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. On March 13, 2024, Cadiz Inc. (the "Company" or "Cadiz") and Fenner Gap Mutual Water Company entered into a water supply agreement with Golden State Water Company ("GSWC"), an investor-owned utility serving the City of Barstow, California ("GSWC Agreement"). The GSWC Agreement provides that GSWC will amend and exercise a 2010 Option Agreement through a First Amendment to purchase an annual supply of 5,000 acre-feet of water from the Company's Water Conservation, Supply and Storage project (the "Project") for service in the City of Barstow, California with conveyance through the Company's 30-inch diameter, 220-mile, existing steel pipeline originating at the Company's Cadiz property with a terminus at Wheeler Ridge (the "Northern Pipeline"). Under the terms of the GSWC Agreement, GSWC will pay approximately one thousand four hundred and fifty dollars ($1,450) per acre-foot year ("AFY") in 2024 dollars as the "as delivered" price for Project water. The payments will be subject to an agreed upon annual adjustment pegged to an agreed upon index (e.g., CPI Water and Sewer Index). In addition, GSWC will reserve the right to acquire specified carry-over storage in the Project for $1,500 per AF and an annual management fee of $20 per AF of acquired storage capacity. Under the GSWC Agreement the parties have agreed to exercise good faith and reasonable best efforts to jointly pursue federal, state, and local grant funding to offset the capital costs for development of pipeline conveyance and appurtenant facilities. Any grant funding received by public water systems will be credited against the "as delivered" price for water to GSWC. Cadiz expects to receive net revenue of $850 per AFY, subject to annual inflation adjustments, for producing conserved water to be conveyed to each of the parties under the GSWC Agreement through the Northern Pipeline. The Company's Northern Pipeline has a delivery capacity of 25,000

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits (d) Exhibits 10.1 Key Terms for First Amendment to Option and GSWC's Conditional Exercise of its Option 104 Cover Page Interactive Data File (embedded within the Inline XBRL document). INFORMATION RELATING TO FORWARD LOOKING STATEMENTS This current report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding the Company's expectation of the benefits to be derived from the GSWC Agreement and option agreements held by the Company. Such statements are subject to significant risks and uncertainties, including the Company's ability to fulfill the required contractual conditions and complete the needed construction for water delivery to occur. Although the Company believes that the expectations reflected in our forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Factors that could cause actual results or events to differ materially from those reflected in the Company's forward-looking statements include delays in the supply chain for materials, whether the parties to the Agreements will be able to obtain the contemplated grant funding, and other factors and considerations detailed in the Company's Securities and Exchange Commission filings. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. CADIZ INC. By: /s/ Stanley E. Speer Stanley e. Speer Chief Financial Officer Date: March 14, 2024

View Full Filing

View this 8-K filing on SEC EDGAR