Cadiz raises $21M to advance its Mojave Groundwater Bank
What's the deal? CadizDealroom has a profile for this one. Try Dealroom → (NASDAQ: CDZI) has raised $21 million in a registered direct offering, selling 5 million common shares at $4.20 each. The round, anchored by an institutional investor focused on water and hard assets, is expected to net about $20 million after fees.
What's the endgame? The Los Angeles company is building the Mojave Groundwater Bank, which it calls the largest proposed supply and storage solution for the Southwest's water crisis. Proceeds go to general corporate purposes and development of its Northern and Southern Pipeline projects.
Why now? Cadiz secured federal right-of-way approval for the Northern Pipeline in July, signed construction contracts, and set a project budget of about $403 million. The raise strengthens its balance sheet as it works toward selecting an equity partner and a final investment decision on the pipeline, chief financial officer Jacinto Hernandez said.
What else? Cadiz has a potential federal WIFIA loan of up to $194 million and up to $51 million in convertible financing from its tribal partner, the Lytton Rancheria of California. Roth Capital PartnersDealroom has a profile for this one. Try Dealroom → acted as exclusive placement agent, and the offering was expected to close around October 30.
What could go wrong? The $21 million is a modest step toward a capital-intensive build, not full financing — and it adds share dilution. Federal lawsuits challenging the pipeline approval, plus unresolved state review and environmental and permitting issues, leave meaningful execution risk.
The signal: Investor appetite for water infrastructure and inflation-protected hard assets is giving contentious projects like Cadiz's a path to incremental capital, even as the broader financing and permitting picture remains unsettled.
Read more: marketscreener.com
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