Acquisition of leading water technology company accelerates Cadiz’s growth as a leading provider of water solutions and furthers commitment to improving reliable access to clean and affordable water California public
Los Angeles, October 25th February 2022 /PRNewswire-HISPANIC PR WIRE/ — Cadiz Inc. (NASDAQ: CDZI, CDZIP) (“Cadiz”, the “Company”) today announced a definitive agreement to acquire ATEC Systems, Inc. (“ATEC”) , the company is a leading provider of technologically advanced, cost-effective groundwater filtration systems for community, municipal, agricultural and industrial uses.
Adding the ATEC business to the Cadiz portfolio diversifies its range of innovative, sustainable clean water solutions and expands Cadiz’s mission to provide safe, affordable drinking water to underserved communities. The company’s flagship project is the Cadiz Water Conservation and Storage Project (“Cádiz Water Project”), which collects excess groundwater and stores it underground before it evaporates in the desert.Cadiz will transport preserved and stored water to central and Southern California Through a network of underground pipelines that once transported oil. Collecting, storing and transporting groundwater saves billions of gallons of water each year, enough to serve millions of households in drought-affected communities.
“We are proud to combine our expertise with ATEC to provide innovative and affordable water solutions, especially for small, rural and low-income communities that do not have the financial resources to access a safe, reliable water supply,” said Susan Kennedy, Executive Chairman of the Board of Directors of Cádiz. “ATEC’s technology and expertise, combined with our state-of-the-art conservation and delivery technologies, will help us deliver affordable clean water solutions to communities around the world and beyond California. “
ATEC, a company headquartered in Hollister, CaliforniaHas been producing water filtration systems since 1982. It initially pioneered technology to provide cost-effective high-rate removal of iron, manganese, and then expanded its reach to a variety of contaminants, including arsenic, chromium-6, nitrates and those found in groundwater that pose serious health risks to drinking water other pollutants.
Cadiz has been in a strategic partnership with ATEC since 2015. The company installed an ATEC system to test the removal of natural minerals to run the Cadiz water project and identified ATEC as the best-in-class, most cost-effective treatment technology for removing minerals from groundwater supplies.
There are more than 3,000 public water systems inside California 2 or more water quality violations per system and 78,000 groundwater wells in operation in contaminated basins California alone. More than 800 California community water systems do not meet, are at risk, or consistently fail to meet primary drinking water standards.The California Water Control Board estimates the cost of fixing the problem is much more than that $10B. ATEC can provide a cost-effective alternative to therapeutic challenges.
“ATEC’s strength lies in the versatility of its design, which can serve both small and large systems with compact filtration systems tailored to remove specific contaminants in each groundwater basin,” Kennedy added. road. “ATEC’s efficient design and low operating costs make it the most cost-effective solution on the market for large municipal and small community water systems to address the growing threat of groundwater contamination California Nationally, it includes chromium 6, nitrates, arsenic, industrial pollution and ‘permanent chemicals’. ”
ATEC has served cities, bodies of water, investor-owned utilities, and small communities and businesses in 10 U.S. states, as well as Canada and Sri Lanka, the system can handle up to 60 million gallons per day (mgd). ATEC systems can be scaled to serve small rural communities as well as larger cities and require less maintenance and upkeep than traditional filtration systems.
The acquisition is expected to close this month. ATEC will retain its name and operate as a division of Cadiz Leodre as Chief Operating Officer. Odell is a leading water treatment engineer who has been advising ATEC and has led the water quality divisions of major global engineering firms including Jacobs, CH2M and Montgomery Watson. He brings first-hand knowledge and experience of ATEC technology and will lead an innovative effort to expand the application of the technology to the full range of groundwater contaminants, building on the success of the company’s founders and key owners, Dave Ketchumwho are retiring after a short transition period.
“Cadiz saw the potential in our treatment technology and they expressed a strong commitment to continue our mission to provide a cost-effective and versatile treatment technology that can be customized to each client’s needs,” Mr. Ketchum said.
“I look forward to working with Cadiz, ATEC’s long-term partner and water solutions innovator,” said Odell. “Together, we will have the ability to serve more communities in more ways and in times of urgent need.”
Cadiz has launched several initiatives to provide vulnerable communities with training in clean water, technology and water conservation. In September, it signed an agreement with the Farmworkers Institute of Education & Leadership Development to build a state-of-the-art innovation center to provide work-based training to underprivileged minority community members. In August, reached an agreement with the Salton Sea Authority and the Torres Martinez Desert Kawela Indians to donate water, infrastructure financing and water treatment technology to serve tribal communities and help offset the effects of evaporation from the Salton Sea . ATEC technology is used to provide filtration systems in tribal wells to ensure safe drinking water on tribal lands.
Terms of the definitive agreement with ATEC were not disclosed. The acquisition will be completed with existing cash resources.
About Cádiz Inc.
The Cadiz company was established in 1983. (NASDAQ: CDZI) is a California Businesses with over 70 square miles of property, critical infrastructure and water rights.The company’s mission is to provide sustainable solutions california Clean Water Challenge. The Cadiz Water Conservation and Storage Project is an innovative aquifer storage project that will protect the billions of gallons of renewable groundwater currently lost to evaporation and salinity pollution from the dry lakes of the Mojave Desert, 400,000 gallons per year. People create new water supplies.The project employs state-of-the-art groundwater management technology, will conserve water for beneficial use, and create a much-needed interconnection of groundwater reservoirs california Existing water infrastructure. For more information, please visit the company’s website at www.cadizinc.com or view the company’s filings with the Securities and Exchange Commission.
Forward-Looking Statements: This press release contains forward-looking statements that are subject to significant risks and uncertainties, including statements relating to the company’s future operating and financial performance and the company’s financing activities. Although the company believes that the expectations reflected in our forward-looking statements are reasonable, there can be no assurance that these expectations will prove to be correct. Factors that could cause actual results or events to differ materially from those reflected in the company’s forward-looking statements include the company’s ability to maximize the value of Cádiz’s land and water resources, the company’s ability to obtain new financing as needed, to obtain additional licensed water projects, and Additional factors and considerations detailed in the company’s Securities and Exchange Commission filings.
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