Water District Not Material to Cadiz Water Project Implementation Decides to Take No Action on a Letter of Intent
March 22 2018 - 4:14PM
Today, Cadiz Inc. [NASDAQ:CDZI] (“Cadiz”, the “Company”) issued the
following statement regarding a vote by the Board of the Upper San
Gabriel Municipal Water District (“Upper District”) to take no
action on a non-binding letter of intent to purchase 5,000
acre-feet from the Cadiz Valley Water Conservation, Recovery and
Storage Project (“Cadiz Water Project”):
“This week the Upper District Board of Directors considered a
non-binding Letter of Intent, or LOI, to purchase approximately
5,000 acre-feet of water from the Cadiz Water Project pursuant to a
staff recommendation on the agenda for March 20, 2018. The
Project is already fully subscribed with 50,000 acre-feet of
supplies reserved under contracts, option agreements and letters of
intent, but engaged with Upper District due to their expressed need
and a vote of support for the Project in December 2017.
Due to a scheduling conflict, the Company asked for the LOI item
to be continued and Upper representatives agreed to hear the item
at a future meeting instead. Contrary to costumary water
board procedure, the item was unexpectedly taken up at the March 20
meeting without full representation by both sides and the Board
ultimately voted to take no further action on the LOI at this
time. Their decision to not proceed with an LOI at this time
is not material to Project implementation or permits and approvals.
The Upper District is not an approving agency for the Project or
necessary for Project construction.
The Cadiz Project has been fully reviewed and approved in
accordance with CEQA and upheld by California’s Courts. The Project
has all permits and approvals required to deliver a long-term
annual average of 50,000 acre-feet per year for 50 years of
reliable water supplies to Southern California and to construct its
wellfield on the Company’s private property and a pipeline within
an existing railroad right-of-way.”
About Cadiz
Founded in 1983, Cadiz Inc. is a publicly-held
renewable resources company that owns 70 square miles of property
with significant water resources in Southern California. The
Company maintains an organic agricultural development in the Cadiz
Valley of eastern San Bernardino County, California and is
partnering with public water agencies to implement the Cadiz Water
Project, which over two phases will create a new water supply for
approximately 400,000 people and make available up to 1 million
acre-feet of new groundwater storage capacity for the region.
Cadiz abides by a wide-ranging “Green Compact” focused on
environmental conservation and sustainable practices to manage its
land, water and agricultural resources. For more information,
please visit www.cadizinc.com.
Contact: Courtney
Degenercdegener@cadizinc.com
FORWARD LOOKING STATEMENT: This release contains
forward-looking statements that are subject to significant risks
and uncertainties, including statements related to the future
operating and financial performance of the Company and the
financing activities of the Company. 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 the
Company’s ability to maximize value for Cadiz land and water
resources, the Company’s ability to obtain new financing as needed,
the receipt of additional permits for the water project and other
factors and considerations detailed in the Company’s Securities and
Exchange Commission filings.
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