Cadiz Partners with Lytton Rancheria for $51M Mojave Groundwater Bank Funding

Cadiz Inc. Partners with Lytton Rancheria to Fund Mojave Groundwater Bank

Cadiz Inc. announces a groundbreaking partnership with Lytton Rancheria, a federally recognized Native American tribe, to secure up to $51 million in financing for the Mojave Groundwater Bank. This project, poised to become the largest groundwater bank in the Southwest, represents a significant step forward in water management strategies across California and the broader Western United States. The agreement, finalized on October 28, 2025, builds on a Letter of Intent established in November 2024, marking the first tribal investment in this ambitious initiative. The partnership underscores the importance of collaborative efforts in addressing water scarcity challenges in arid regions.

Cadiz has formed the Mojave Water Infrastructure Company, LLC, to oversee the project, which is part of a larger capital raising effort aimed at generating approximately $450 million. CEO Susan Kennedy emphasizes that this collaboration with Lytton Rancheria is a historic milestone that sets a new business model for infrastructure development, particularly in the realm of water management. The partnership not only highlights the potential for innovative financing models but also the critical role of tribal leadership in managing vital natural resources. Tribal Chairperson Andy Mejia of Lytton Rancheria reiterates the significance of engaging tribal perspectives in water resource management, which is increasingly essential as climate change intensifies water scarcity issues.

Under the terms of the agreement, Cadiz can access unsecured loan proceeds of up to $51 million to cover development costs, with Lytton's loan convertible into membership interests in the project entity. Initial funding of about $15 million is allocated for reimbursing development expenses and acquiring necessary equipment for construction, anticipated to begin in 2026. Moreover, Cadiz is actively engaging with private equity investors to raise an additional $400 million, which will complement municipal debt and government grants to fully finance the project. As part of this agreement, Cadiz will issue 600,000 shares of common stock as a commitment fee, with additional shares issued for each million dollars drawn from the loan.

In addition to securing this funding, Cadiz's partnership with Lytton Rancheria signifies a broader trend of increased collaboration between private entities and tribal governments to address water management. This strategy not only promotes economic development for Native communities but also fosters sustainable practices that can enhance water availability in drought-prone areas. The Mojave Groundwater Bank initiative stands as a testament to how innovative partnerships can lead to effective solutions in the face of pressing environmental challenges.