Cadiz shares surge after landmark bill rejection
Published September 7th, 2017
Shares in water development company Cadiz, Inc. surged by more than 31% earlier this week after a bill which would have effectively blocked the firm’s flagship water project in the Mojave Desert was rejected in the California Senate on Friday.
HB1000 would have required Cadiz to secure additional state environmental approvals for its proposal to supply up to 50,000 acre-feet of water per year from a desert wellfield to cities in southern California. The shares initially slumped 20% on Friday, but rallied after the bill was rejected.
Meanwhile, the company’s proposal to run its water pipeline along an existing railroad right-of-way were bolstered this week when the Department of the Interior issued a new memorandum clarifying the use of railroad rights-of-way by third parties.
Cadiz CEO Scott Slater has previously told GWI that he expects to resolve right-of-way disputes and break ground on the project by the end of 2017.