logo-loader
Cadiz Inc

Cadiz shares pop on defeat of California bill to block its efforts to pump water from the Mojave Desert

The throwing out of a California bill paves the way for Cadiz to pump as much as 16.3bn gallons of water from its wells underneath the Mojave Desert

California Republic logo
Cadiz has been battling with environmentalists who argue that its business activities will endanger Bonanza Spring, the biggest spring in the Mojave

A bill that would have impeded a move by the Los Angeles-based Cadiz Inc (NASDAQ:CDZI) to pump water from a desert aquifer in the Mojave Desert has died in the California Senate, which marks a major victory for the company’s efforts to supply water to Southern California.

The defeat of California Senate Bill 120, which was introduced just last month, came about after the state’s Senate Appropriations committee set aside the measure in the wake of legislative deliberations.

The bill would have forced Cadiz to pass environmental tests before moving ahead with its program to pump and then pipe water from the desert to cities across Southern California.

The throwing out of the bill paves the way for Cadiz to pump as much as 16.3bn gallons of water each year from its wells underneath the Mojave Desert and send it via a forty-three mile pipeline to the Colorado River Aqueduct from where it will make its way to the people of Southern California. 

Cadiz had been locked in a battle with environmentalists who had pushed lawmakers in Sacramento to enact a bill that would hamper the project. Conservationists argued that Cadiz’s business activities would endanger Bonanza Spring, the biggest spring in the Mojave.

In response to the news, Cadiz shares jumped 17% to US$11.25 in Tuesday’s afternoon trade.

Quick facts: Cadiz Inc

Price: $12.73

Market: NASDAQ
Market Cap: $343.29 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Alchemist sees big market in China for medical cannabis sales

Alchemist (CSE: AMS) CEO Paul Mann and Vice President of Business Development, Asia Pacific Johnson Lee joined Steve Darling from Proactive Vancouver to discuss Alchemist looking for opportunities for cannabis in the emerging cannabis market.  Mann and Lee talk about what the industry...

2 days, 14 hours ago

2 min read