CADIZ, CA – Lytton Rancheria of California has executed a definitive agreement with Cadiz Inc., providing for up to $51 million of capital as the first tranche of financing for construction and development of the Mojave Groundwater Bank, Cadiz Inc.’s water supply and groundwater storage project expected to be the largest groundwater bank in the Southwest.
The agreement follows a letter of intent executed between Lytton and Cadiz in November 2024 and establishes the first tribal investment in the project. Lytton’s investment represents the first tranche of up to approximately $450 million in total equity capital being raised by Cadiz Inc. through Mojave Water Infrastructure Company (MWI), the special-purpose entity formed by Cadiz Inc. to construct, own, and operate the project.
“For generations, tribes have protected the land and water that sustains us,” said Lytton Rancheria Tribal Chairperson Andy Mejia. “Today, we are taking a seat at the table to help shape how water is managed across California and the West. This partnership demonstrates that when tribal leadership is part of the solution, every community benefits.”
“This agreement marks a historic milestone for Cadiz and establishes a powerful new business model for building critical infrastructure,” said Susan Kennedy, CEO 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.”
Under the Agreement, Cadiz may draw unsecured loan proceeds up to $51 million to fund development and capital costs associated with the project. Lytton’s $51 million loan is convertible into membership interests in MWI on the same economic terms offered to other equity investors in MWI. Initial proceeds of approximately $15 million are expected to reimburse Cadiz Inc. for project development expenses and additional draws are anticipated to fund deposits on equipment necessary for construction of project facilities expected in 2026.
Cadiz Inc. is currently completing diligence with private equity investors for up to an additional $400 million in equity investment into MWI that, in combination with municipal debt and government grant financing, is expected to fund construction of all project facilities.
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 Cadiz Inc.’s effective Form S-3 shelf registration statement (File No. 333-281507).
