Cadiz Inc. (CDZI) - Get Cadiz Inc. Report ("Cadiz", the "Company") announced today that its joint venture ("JV") subsidiary with Glass House Group to farm, harvest, process and market hemp and hemp-derived products will plant its first commercial hemp crop in March 2020.
Land preparations for the spring commercial planting are nearly complete and So Cal Hemp JV will begin cultivation of organic hemp in 2020 on up to 1,280 acres at the Cadiz Ranch. New labor force housing, three new irrigation wells and piping have been installed over the last several months to support commercial production. Soil enhancement via organic green compost fertilizer application have prepped the soils to support natural, pesticide-free hemp growth.
"Progressing into a viable commercial organic hemp operation provides tremendous growth opportunities for our company, and also aligns with our core mission to deliver organic, sustainable products to help American corporations reduce their carbon footprint," said Scott Slater, CEO & President of Cadiz Inc. "We believe a sun-grown, organic, low water using hemp product from Cadiz can service rising demand across all industries for products that support a more sustainable climate and environment, and offer tremendous benefits for humans, plants and animals."
The commercial planting will follow the recent completion of two successful trial crops, the first of which was planted during the height of the summer in 2019 and the second during the winter. The completed trials confirmed the appropriate planting cycle, weather conditions and varietals for successful organic hemp growth in the unique Mojave Desert environment at Cadiz and further demonstrated hemp's commercial viability for the Company's agricultural operations.
"The Cadiz Ranch offers fertile ground for growing unique, organic, California hemp suitable for a variety of hemp-derived products, including cannabinoid products and fiber, plastic and building material substitutes increasingly sought by the global consumer," said Graham Farrar, President of Glass House Group. "We believe our hemp-derived product will be attractive to American businesses competing for market share among sustainability-conscious households and buyers seeking natural health and beauty products as well as alternatives to carbon intensive materials."
Since the legalization of hemp in the 2018 U.S. Farm Bill, hemp industries in California and across the United States have sought regulatory support and clarity for successful industry growth. Our JV operation continues to work with law enforcement and abide by all local, state and federal laws and regulations to ensure success.
Founded in 1983, Cadiz Inc. (CDZI) - Get Cadiz Inc. Report is a natural resources leader that owns 70 square miles of property with significant water resources in Southern California. The Company is the largest agricultural operation in San Bernardino, California, where it has sustainably farmed since the 1980s and is now actively pursuing a joint venture to organically cultivate hemp on up to 9,600 acres. The Company also is partnering with public water agencies to implement the Cadiz Water Project, recently named a Top 10 Infrastructure Project that over two phases will create a new water supply for approximately 400,000 people and make available up to 1 million acre-feet of new groundwater storage capacity for the region. Guided by a holistic land management plan, we are dedicated to pursuing sustainable projects and practicing responsible stewardship of our land, water and agricultural resources. For more information, please visit www.cadizinc.com.
Glass House Group is one of the largest, privately held, vertically-integrated cannabis and hemp companies in the world. Its family of eco-friendly, community-conscious cultivation, manufacturing, brands and retail locations bring to market only the finest strains of cannabis and hemp using cutting-edge care, technologies and environmental sensibility to deliver uncompromising craft-quality strains, flower, extracts, pre-rolls, vaporizers, cartridges and apparel. As a leading brand-enabling company, celebrities, artists, athletes and influencers turn to Glass House Group to create powerful partnerships that reach new audiences and drive consumer engagement. Currently, Glass House Group is expanding its suite of companies, product lines and brands and is expected to see sizable growth throughout 2019 and beyond.
FORWARD-LOOKING STATEMENT: This release contains forward-looking statements that are subject to significant risks and uncertainties, including statements related to the future operating and financial performance of the Company and the financing activities of the Company. Although the Company believes that the expectations reflected in our forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Factors that could cause actual results or events to differ materially from those reflected in the Company's forward-looking statements include the Company's ability to maximize value for Cadiz land and water resources, the Company's ability to obtain new financing as needed, the receipt of additional permits for the water project and other factors and considerations detailed in the Company's Securities and Exchange Commission filings.
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