Cadiz's ATEC Water Systems Wins $1.6M in New Sales Contracts

Rhea-AI Summary

Cadiz, Inc. (NASDAQ: CDZI) announced that its subsidiary ATEC Water Systems, has secured three new sales contracts totaling $1.6 million for arsenic, iron, and manganese filtration systems. These systems, set for delivery in 2025, will serve nearly 100,000 people in California, Washington, and Oregon, processing up to 10 million gallons per day.

ATEC's growth is driven by tightening water quality regulations and increasing demand for groundwater treatment. Cadiz expects ATEC's gross segment revenues to reach $15 million for fiscal year 2024, with strong growth anticipated in 2025. The company's treatment systems use patent-pending filter media processes to remove common groundwater contaminants, offering scalable solutions for various community sizes and needs.

Positive

• ATEC secured $1.6 million in new sales contracts for water filtration systems
• Cadiz expects ATEC's gross segment revenues to reach $15 million for fiscal year 2024
• Strong segment growth anticipated in 2025
• ATEC's systems are scalable and address a wide range of groundwater contaminants
• Increasing demand for ATEC's treatment products due to tightening water quality regulations

Negative

• None.

Arsenic, iron and manganese filter systems to be delivered in 2025.

LOS ANGELES, Oct. 22, 2024 /PRNewswire/ -- Cadiz, Inc. (NASDAQ: CDZI / CDZIP) ("Cadiz" or the "Company"), a California water solutions company, today announced that its operating subsidiary ATEC Water Systems, LLC ("ATEC") was awarded three new sales contracts totaling $1.6 million for arsenic, iron and manganese filtration systems. The systems will be delivered in 2025.  

"Groundwater contamination is a growing global threat," said Susan Kennedy, Cadiz CEO and Board Chair. "The demand we've been seeing over the last few months for ATEC's treatment products is setting us on a path for strong segment growth in 2025."

Under the new sales contracts announced today, ATEC will manufacture treatment systems using its 42" and 48" wide filters to remove arsenic, iron and manganese from groundwater supplies in rural and suburban communities in California, Washington and Oregon that serve close to 100,000 people reliant on groundwater as their principal water supply. The filters will be capable of processing up to 10 million gallons per day.

"I am proud of the work we are doing to help water districts, cities and disadvantaged communities clean up their groundwater, and we are excited to ramp up production at ATEC to meet the growing demand we're seeing for our products." said Lee Odell, ATEC's Chief Operating Officer."

Since Cadiz acquired ATEC's assets in 2023 for $2 million, ATEC has experienced rapid growth in orders in 2024 propelled by tightening water quality regulatory standards and the need to integrate groundwater into the portfolio of water supply for growing communities. Cadiz continues to expect gross ATEC segment revenues to reach $15 million for fiscal year 2024 and anticipates strong segment growth in 2025.

The ATEC treatment system uses patent-pending filter media processes to remove common groundwater contaminants by adsorption. The filters and systems are fully scalable and can be manufactured to different sizes and specifications depending on the volume of groundwater treated; contracts to date range from 60 million gallons a day for the largest water conservancy district in Utah to customized smaller systems for isolated smaller communities dependent on groundwater for their water supply. ATEC systems provide treatment for groundwater addressing a wide range of contaminants including arsenic, hexavalent chromium, nitrates, and other groundwater constituents of concern.

About ATEC
ATEC Water Systems, LLC is a wholly owned subsidiary of Cadiz, Inc. (NASDAQ: CDZI) and a leading producer of specialized water treatment solutions for contaminated groundwater sources. ATEC's treatment solutions are affordable, highly scalable, and easy to maintain, making them practical for a variety of applications from small, underserved communities to large municipalities. ATEC's filters have been installed at over 450 locations, including community, municipal, agricultural, and industrial sites and used to successfully reduce and remove iron, manganese, arsenic, chromium-6 and other contaminants of concern, solving some of the toughest groundwater treatment challenges. To learn more, visit www.atecwater.com. 

About Cadiz, Inc.
Founded in 1983, Cadiz, Inc. (NASDAQ: CDZI) is a California water solutions company dedicated to providing access to clean, reliable and affordable water for people through a unique combination of water supply, storage, pipeline and treatment solutions. With 45,000 acres of land in California, 2.5 million acre-feet of water supply, 220 miles of pipeline assets and the most cost-effective water treatment technology in the industry, Cadiz offers a full suite of solutions to address the impacts of climate change on clean water access. For more information, please visit https://www.cadizinc.com. 

Forward-Looking Statements
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "anticipates", "expect", "may", "plan", or "will". Forward-looking statements include, without limitation, projections, predictions, expectations, or beliefs about future events or results and are not statements of historical fact, including statements regarding the Company's expectations regarding ATEC segment revenues. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements. These and other risks are identified in our filings with the Securities and Exchange Commission (the "Commission"), including without limitation our Annual Report on Form 10-K for the year ended December 31, 2023 and our Quarterly Reports on Form 10-Q and other filings subsequently made by the Company with the Commission. All forward-looking statements contained in this press release speak only as of the date on which they were made and are based on management's assumptions and estimates as of such date.  We do not undertake any obligation to publicly update any forward-looking statements, whether as a result of the receipt of new information, the occurrence of future events or otherwise.

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SOURCE Cadiz, Inc.

FAQ

What is the value of ATEC Water Systems' new sales contracts announced by Cadiz (CDZI)?

ATEC Water Systems, a subsidiary of Cadiz (CDZI), has secured three new sales contracts totaling $1.6 million for arsenic, iron, and manganese filtration systems.

When will ATEC Water Systems deliver the filtration systems for Cadiz (CDZI)?

The filtration systems secured in the new sales contracts will be delivered in 2025.

What are Cadiz's (CDZI) revenue expectations for ATEC Water Systems in fiscal year 2024?

Cadiz (CDZI) expects ATEC Water Systems' gross segment revenues to reach $15 million for fiscal year 2024.

How many locations have ATEC Water Systems' filters been installed at for Cadiz (CDZI)?

ATEC Water Systems' filters have been installed at over 450 locations, including community, municipal, agricultural, and industrial sites.