Cadiz (CDZI) Investor update summary

2024 achievements and business transformation

• Secured five water supply agreements covering 85% of Northern Pipeline capacity for 40 years, expected to generate $25–$30 million in annual gross cash flows with contracts capped at $1,650 per AFY for up to 50,000 AFY.

• Established an LLC partnership for the Mojave Groundwater Bank, with up to $400 million in equity from investors, including Native American tribes, and eligibility for $500 million in state grants; announced a $50 million investment from Lytton Rancheria.

• Designed a new PFAS removal filter system, expanding ATEC Water Systems' product line and market competitiveness, with treatment approaches including FLUORO-SORB 200, ion exchange, activated carbon, and high-pressure membranes.

• Signed an option to purchase 180 miles of steel pipe from the Keystone XL project, reducing capital costs and supply chain risk, and expanding the pipeline network.

• Entered a land lease with RIC Energy for a green hydrogen production facility, leveraging water and solar assets for clean energy synergies, aiming to build California's largest green hydrogen facility using 100% solar power and up to 500 acre-feet of water per year.

2025 objectives and strategic focus

• Complete construction of well field and energy infrastructure to support water, storage, hydrogen, solar, and agriculture operations.

• Expand ATEC manufacturing and make a strong entry into the PFAS filtration market.

• Finalize NewCo and LLC structures, secure capital, execute commercial agreements, and break ground on the Northern Pipeline to enable water deliveries by 2026.

• Pursue additional hydrogen facility development and maximize synergies between water and clean energy projects.

• Work with tribal and community partners to apply for time-sensitive grant funding.

Financial update and capital structure

• Raised $21.9 million in equity in November 2024, with $17.4 million cash on hand at year-end and pro forma cash and cash equivalents at $29.1 million as of 9/30/2024.

• Senior secured debt totals $41.7 million, with maturities in June 2027; additional $16.6 million unsecured convertible debt.

• No debt due until 2027, providing runway for project development.

• Water supply and storage contracts generate cash flows split between NewCo (51%) and Cadiz (49%), with capital, O&M, and management fees distributed among LLC, NewCo, and Cadiz.

• $11 million in capital costs expected to be reimbursed by the LLC.