It’s been an interesting day if you are a shareholder of Cadiz Inc (NASDAQ:CDZI), as the stock is up significantly on a sudden surge of volume. The stock had been trading in the red for the day until a little after 11:30 a.m. ET when shares rose rapidly. This forced a temporary halt of the stock at approximately 11:40 a.m. before it reopened to continue its rise. Cadiz Inc (NASDAQ:CDZI) shares reached as high as $5.78 in early afternoon trading and are currently up close to 30% on the day.
The cause for this move in the stock price is specific information released in a conference call earlier today reporting a deal with Water Asset Management LLC (WAM) in San Bernardino, CA worth $12 million. Additionally the company is also in negotiations with WAM for for a lease of a further 7,500 acres for a proposed price of $43,000,000. These deals could be huge for a company whose market cap is just around $90 million.
The stock is currently trading higher by 29.71% or $1.24 following the positive news, hitting $5.41 per share at the time of us publishing this article. About 836,167 shares traded hands or up 516.34% from the average. cdzi has declined 51.57% since May 27, 2015 and is currently downtrending. It has underperformed the S&P500 by 49.44%.
Cadiz Inc. is a land and water resource development firm with acreage in three areas of eastern San Bernardino County, California. The company has a market cap of $73.02 million. The Firm is engaged in agricultural activities on its properties in the Cadiz/Fenner valley and development of the water resources underlying that site. It currently has negative earnings. The agricultural activities include vineyards, citrus orchards and seasonal vegetables.