Boston, MA 07/03/2013 (wallstreetpr) – Cadiz Inc. (NASDAQ:CDZI) moved -1.08% lower at $4.60 and traded between $4.58 and $4.83 after opening the day at $4.63. Its performance over the past few days remained at -5.54%, which stands at -21.77% per month. Its performance last year after recent close was -36.2%. Cadiz Inc. is involved in acquiring and developing land and water resources. The Company’s primary asset consists of 45,000 acres of land in three areas of eastern San Bernardino County, California.
The Company is engaged in a combination of organic farming and water supply and storage projects, including the Cadiz Valley Water Conservation, Recovery & Storage Project which will deliver a new, reliable water supply throughout Southern California. These sustainable solutions aim to create a sustained business model for Cadiz. Cadiz Inc. and Limoneira Company (LMNR) are delighted to declare that they have agreed upon a big-time agreement to make fresh orchards of lemon on Cadiz’s agricultural property in its turf. As per the terms, Limoneira has secured the right to plant up to 1,280 acres of lemons over the coming five years at the Cadiz Ranch operations in the Cadiz Valley. The arrangement provides a new growing, packing, and marketing opportunity in addition to Limoneira’s existing production and furthers Cadiz’s commitment to the sustainable development of its Cadiz Valley property. In return, Limoneira will owe Cadiz an annual rental payment and water supply payment. The rental payment will include a base rent of $200 per planted acre and a lease payment equal to 20% of net cash flow from the harvested crops grown on Cadiz property. The annual rental payment will not exceed a total of $1,200 per acre. The Agreement also provides a tag right for Limoneira to redirect water that would otherwise be used for lemons on its leased acreage to a 500 acre-foot participation right in the Cadiz Valley Water Conservation, Recovery and Storage Project (the “Water Project”), which was approved last year. All smiles for Cadiz.
