Business
Cadiz Provides B. Riley Institutional Investor Conference Recap
CEO & Chairman Discusses Goal to Pursue Financing Structures, Move Project Development & Capital Costs Off Balance Sheet LOS ANGELES, May 30, 2024
About this update from Cadiz, Inc.
[{"type":"text","content":"CEO & Chairman Discusses Goal to Pursue Financing Structures, Move Project Development & Capital Costs Off Balance Sheet\nLOS ANGELES, May 30, 2024 /PRNewswire/ -- Cadiz, Inc. (NASDAQ: CDZI / CDZIP) (\"Cadiz\" or the \"Company\"), a California water solutions company, today released a brief update from Chairman and CEO Susan Kennedy to address the Company's most frequently asked questions following its participation in the B. Riley Securities 24th Annual Institutional Investor Conference. A copy of the Company's conference presentation is available at this link.\n\n \n \n \n \n \n \n\n \n---\nFellow Shareholders:\nLast week, we attended the B. Riley Institutional Investor Conference, which presented a distinct forum to meet with many of you. I would like to thank our sell-side analyst Mike Crawford and the extended B. Riley team for the opportunity to participate in a productive two days of meetings and a well-attended roundtable discussion. There were a handful of common questions from interested investors and I'd like to recap a few questions below for those who were unable to attend in person for a live discussion.\nWhat are the best current indicators of long-term success to gauge progress on the Company's plans for the development of its water supply, storage and conveyance assets? \nThe real pivot point for Cadiz in terms of milestones occurred in Q1 of this year when we announced the first firm contracts for water supply.\nThese contracts include two investor-owned utilities, one public water system and one housing developer and represent more than 16,000 acre-feet per year, or 65% of the capacity of our Northern Pipeline (which has a total throughput capacity of 25,000 acre feet per year.) The agreements, with 40-50 year contract terms, represent expected cumulative payments in excess of $1.2 billion over the life of those contracts. When the Northern Pipeline becomes operational, which is expected in 2026, the estimated net annual revenue to the company from these contracts alone is approximately $16 million per year. We are in advanced stages of negotiation with other public water systems to purchase the remaining capacity of the Northern Pipeline and we expect additional off-take agreements to be finalized throughout the year. \nHaving firm contracts in place for water supply is key to project financing which will ena...