Cadiz Inc. (NASDAQ:CDZI) shares have reached a new 52-week high, touching $4.72 amidst a year marked by significant growth. According to InvestingPro data, the stock has demonstrated remarkable momentum with a 46.1% surge over the past six months alone. The company, known for its focus on sustainable water and agricultural resources, has seen its stock price surge by 61.8% year-to-date. While this impressive ascent reflects strong market interest, InvestingPro analysis indicates the stock is currently trading above its Fair Value. The company faces profitability challenges, with negative gross margins and projected losses for the current year. However, analysts anticipate significant sales growth, suggesting potential for future improvement. Get access to 13 additional InvestingPro Tips and comprehensive financial metrics with an InvestingPro subscription.
In other recent news, Cadiz Inc. has made significant strides in its various projects. The company acquired 180 miles of steel pipe from the defunct Keystone XL Pipeline for a new water delivery project, aiming to start construction in 2025. Cadiz has also secured a letter of intent with a non-profit investment fund and other investors for $401 million in equity capital to support the Mojave Groundwater Bank project.
Cadiz has also announced the sale of 7 million shares in a registered direct offering, raising approximately $23.38 million in gross proceeds. The funds are earmarked for the development of the company's water supply and groundwater banking project. Analyst firm B. Riley Securities maintained a Buy rating on Cadiz shares, highlighting the potential for a positive shift if the company successfully establishes a Master Limited Partnership.
The company has also partnered with a non-profit investment fund for a $150 million investment to support the Mojave Groundwater Bank project. Cadiz and RIC Energy are also collaborating to establish California's largest green hydrogen production site, leveraging solar power for green hydrogen production. Cadiz's subsidiary, ATEC Water Systems, secured three contracts valued at $1.6 million, set to serve nearly 100,000 people across California, Washington, and Oregon by 2025.
Finally, Cadiz has reached near full capacity deals for its Northern Pipeline, with purchase commitments for 85% of the pipeline's capacity. The company has also appointed Cathryn Rivera as its new Chief Operating Officer, who is expected to drive the execution of Cadiz's groundwater banking project. These are some of the recent developments from Cadiz Inc.
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