Cadiz (CDZI) said Tuesday that it has signed a letter of agreement with an unnamed publicly traded company to invest up to $175 million in the Mojave Groundwater Storage Company, which Cadiz established to own and operate its groundwater banking project in the Mojave Desert.

Under the terms of the agreement, Cadiz said the unnamed company will be the lead investor in MGSC and that it expects it and other qualified investors to provide up to $401 million of equity capital to acquire assets and fund construction of Mojave Groundwater Bank facilities.

CDZI shares were 1.5% lower in recent premarket activity.