Posted on | August 11, 2009 | 8 Comments
CADIZ Inc filed its quarterly report for April through June 2009 yesterday, a period still pregnant with unanswered questions over compromising endorsements from the Governor of California, Rep. Jim Costa (D-Fresno) and San Bernardino County Supervisor Brad Mitzelfelt.
Seen at start and finish of the quarter, trading looks innocuous enough. A share price that was at $8.17 at the close of trading on April 1st ended at $9.63 on June 30th.
But the date that bucks the trend is June 5th, when in a sudden, nearly seven-fold increase in trading, the share price closed at $12.50, making it number four on the Wall Street Journal’s daily report of NasDaq’s Biggest Percentage Gainers.
Driving the sudden rush in trading was a Cadiz press release carrying an endorsement of its Mojave groundwater project by California Governor Arnold Schwarzenegger.
The governor’s chief of staff, Susan Kennedy, is a former Cadiz consultant, who earned $120,000 from the company in 2005.
Also endorsing Cadiz in the corporate press release were San Bernardino County Supervisor Brad Mitzelfelt, who the Los Angeles Times reported “got a total of $10,000 in campaign contributions from Cadiz in 2007” and Rep. Jim Costa (D-Fresno), according to the same Times report a recipient of more than $12,000 in donations from Cadiz associates.
Pressed by the Times as to whether Kennedy had anything to do with the announcement, the governor’s staff responded “We’re not going to elaborate . . . on our internal process.”
Internal it was, so internal that the governor’s Cadiz endorsement didn’t make his own website’s news feed. Instead, on June 4, the logical news day that Cadiz might have picked up the governor’s comments without inside advantage, the press release from Schwarzenegger’s official website was “Governor Launches New Component for Transparency Website.”
Governor Schwarzenegger promised a reform agenda when he was swept to office after Gray Davis’ controversial recall in 2003. According to Los Angeles Times reports, Davis was the recipient of $345,000 in Cadiz donations.
CADIZ TRADING TIMELINE FROM 2ND QUARTER 2009
May 13, 2009: 733,051 Cadiz shares traded. Cadiz Share Price opens $6.34, closes $6.00
May 14, 2009: Cadiz announces signing “Green Compact” with Natural Heritage Institute. Cadiz Share Price opens $6.04, closes $6.28
May 20, 2009: 262,300 Cadiz shares traded. Cadiz Share Price opens $6.42, closes $6.37
May 22, 2009: Cadiz CFO Timothy J Shaheen awarded 30,000 shares (Award of Stock Options). Cadiz Share Price opens $6.40, closes $6.65
May 22, 2009: Cadiz CEO Keith Brackpool awarded 60,000 shares (Award of Stock Options). Cadiz Share Price opens $6.40, closes $6.65
June 1, 2009: Cadiz CFO Timothy J Shaheen awarded 4,000 shares (Award of Stock Options), Cadiz Share Price opens $7.66, closes $8.29
June 4, 2009: Cadiz Inc announces it has completed arrangements to amend its senior debt facility with LC Capital Master Fund Ltd. Cadiz Share Price opens $8.60, closes $8.60
June 5 2009: Cadiz claims to have signed Letters of Intent with five water providers, four of which are unnamed. Project endorsed by Governor Schwarzenegger, Rep. Jim Costa (D-Fresno) and San Bernardino County Supervisor Brad Mitzelfelt in Cadiz, Inc press release. 332,082 Cadiz shares traded, a nearly seven-fold jump, making it No. 4 on the NasDaq Biggest Percentage Gainers. Cadiz shares open $12.06, close $12.50
This post has been updated at 9.23am, August 11, 2009. The trading timeline has been added.
Links for more from Chance of Rain and the Los Angeles Times on Cadiz: