Cadiz Secures $51M Tribal Investment to Launch Mojave Groundwater Bank
Cadiz Inc. announced that it has executed a definitive agreement with Lytton Rancheria, a federally recognized Native American tribe in California. This agreement will provide for up to $51 million in capital as the first tranche of financing for the construction and development of the Mojave Groundwater Bank, the company’s water supply and groundwater storage project, which is expected to be the largest groundwater bank in the Southwest.
Under the agreement, Cadiz can borrow up to $51 million unsecured to cover development and capital expenses for the project. Lytton’s $51 million loan is convertible into membership interests in MWI on the same economic terms given to other equity investors in MWI. An initial amount of about $15 million is expected to reimburse the company for project development costs, with additional disbursements likely to fund deposits on equipment needed for constructing project facilities, which is scheduled for 2026.
Prioritizing Community
The agreement follows a Letter of Intent signed between Cadiz and Lytton in November 2024, marking the first tribal investment in the project. Lytton’s investment constitutes the initial portion of roughly $450 million in total equity capital that the company is raising through Mojave Water Infrastructure Company, LLC, the special-purpose entity it created to build, own, and operate the project.
The company is currently conducting due diligence with private equity investors for an additional equity investment of up to $400 million in MWI. This, combined with municipal debt and government grant financing, is expected to fund the construction of all project facilities.
“For generations, tribes have protected the land and water that sustains us. Today, we are taking a seat at the table to help shape how water is managed across California and the West,” said Lytton Rancheria Tribal Chairperson Andy Mejia. “This partnership demonstrates that when Tribal leadership is part of the solution, every community benefits.”
A Historic Milestone
“This agreement marks a historic milestone for Cadiz and establishes a powerful new business model for building critical infrastructure,” said Susan Kennedy, Chief Executive Officer of Cadiz Inc. “Lytton’s leadership has transformed the Mojave Groundwater Bank from a project to a precedent; and Chairman Mejia’s vision has opened the door to what could be a whole new era for water in the west.”
In connection with the agreement, Cadiz will issue 600,000 shares of common stock at closing as a commitment fee, and 25,000 shares of common stock per $1 million funded on each draw. All such shares will be issued under the company’s effective Form S-3 shelf registration statement.
Additional details about the Agreement are included in a Current Report on Form 8K filed by the Company with the SEC.
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