Cadiz Unit Snags $5M Contract


Cadiz Inc., a downtown Los Angeles-based water infrastructure company, has announced a $5.2 million contract awarded to its water filtration subsidiary, ATEC Water Systems, to provide filtration systems for a groundwater treatment project in Oregon.

The contract, announced before the market opened on May 13, is with the Cascade Groundwater Alliance, a partnership between the city of Gresham (about 15 miles east of Portland) and the Rockwood Water People’s Utility District. The partnership is pursuing a plan to clean up groundwater in the region so that it can be used by the city of Gresham and neighboring communities, thereby reducing the region’s reliance on imported water.

ATEC will manufacture 140 filters to remove manganese and other contaminants from the local groundwater. The filters are anticipated to be delivered over the next 12 months.

Manganese is currently under consideration by the Environmental Protection Agency for regulation that would establish concentration limits in water supplies. The chemical is suspected to cause harm to young children, the elderly, and people with liver disease; studies of its effects are ongoing.

Investors welcomed the announcement, sending shares up 33% over the next five trading sessions to close May 17 at $3.11.

Cadiz purchased Hollister-based ATEC Water Systems in late 2022 for about $2 million. The aim was to secure a consistent revenue stream for Cadiz, which has been spending tens of millions of dollars each year for the last 30 years trying to get approvals for its plan to transfer water through pipelines from its Mojave Desert aquifer to aqueducts to deliver to water districts throughout the state.

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