On July 31, 2019, SoCal Hemp JV LLC, a Delaware limited liability company in which the Company holds a 50% beneficial interest (the \”JV\”), entered into a lease agreement (the \”Agreement\”) with the Company whereby the JV will cultivate industrial hemp on up to 9.600 acres at the Company\’s agricultural property in eastern San Bernardino County, California (the \”Cadiz Ranch\”). Under the terms of the Agreement, the JV will initially lease 1,280 acres at the Cadiz Ranch and will also hold options to lease up to 8,320 additional acres by 2022.

The Agreement will have an initial term of five years and the JV will have the option to extend the term for three successive periods of five years each.

In consideration for the lease arrangement, the JV will provide the Company an annual rental payment equal to $500 per acre of leased property, subject to periodic CPI adjustment. The Company will be required to provide the JV with infrastructure reasonably necessary for the cultivation of hemp on the leased property, and will provide a water supply at cost.

The foregoing summary of the Agreement does not purport to be complete and is qualified in its entirety by the full terms and conditions of the Agreement filed as an exhibit to this Current Report on Form 8-K and which is incorporated herein by reference.

Item 8.01 Other Events

On August 1, 2019, the Company issued a press release announcing the creation of the JV. The press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

10.1 Agricultural Lease dated as of July 31, 2019 between Cadiz Real Estate LLC and SoCal Hemp JV LLC

10.2 Limited Liability Company Agreement of SoCal Hemp JV LLC

99.1 Press Release dated August 1, 2019

CADIZ INC Exhibit
EX-10.1 2 exh10-1.htm EXHIBIT 10.1   EXHIBIT 10.1 AGRICULTURAL LEASE 1. Effective Date; Parties Effective Date:  July 31,…
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About Cadiz Inc. (NASDAQ:CDZI)

Cadiz Inc. is a land and water resource development company with approximately 45,000 acres of land in three areas of eastern San Bernardino County, California. The Company’s primary business is to acquire and develop land with water resources for various uses, including groundwater supply, groundwater storage and agriculture. It is focused on the development of the Cadiz Valley Water Conservation, Recovery and Storage Project, which captures and conserves millions of acre-feet of native groundwater being lost to evaporation from the aquifer system beneath its approximately 34,000-acre property in the Cadiz and Fenner valleys of eastern San Bernardino County and deliver it to water providers throughout Southern California. In addition to the Cadiz/Fenner Valley property, it also owns approximately 11,000 additional acres in the eastern Mojave Desert portion of San Bernardino County, California at two separate properties. It owns over 2,000 acres near Danby Dry Lake in Ward Valley.