Cadiz signs water supply deal with Solstra for up to 1,275 AFY at $1,750/AF; ~$16M net revenue over 15 yrs

CADIZ INC

Agreement to provide 1,275 acre-feet/year of conserved water to Solomon Hills workforce housing development near Vandenburg AFB.
As-delivered price capped at $1,750/acre-foot in 2024 dollars, adjusted annually by CPI Water & Sewer Index.
Initial payment of $150,000 due upon certain conditions; $20,000 environmental review contribution paid upfront.
Cadiz expects net revenue of ~$16M over 15 years ($850/AF in 2024 dollars) from the agreement.
Northern Pipeline now ~65% reserved under supply agreements; exit payment up to $2.25 million if Solstra leaves after construction.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

CADIZ INC entered into Solstra Agreement with Solstra Communities California LLC valued at approximately $16 million (effective 2024-04-18).

Action: entry
Agreement: supply
Counterparty: Solstra Communities California LLC
Value: approximately $16 million
Effective: 2024-04-18

Exact text from the filing

On April 18, 2024, Cadiz Inc. (the “Company” or “Cadiz”) and Fenner Gap Mutual Water Company entered into a water supply agreement with Solstra Communities California LLC (“Solstra”), a California limited liability company and the owner of private land in southern California pursuing the development of up to 4,000 workforce housing units and ancillary commercial infrastructure (“Solomon Hills”) that would serve the Vandenburg Air Force Base community (“Solstra Agreement”).

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Source: SEC EDGAR

accession 0001213900-24-034270

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