DENVER, CO / ACCESSWIRE / August 19, 2019 / Pure Cycle Corporation (PCYO) (“Pure Cycle” or the “Company”) announced today that it has closed on the sale of 127 finished lots at Sky Ranch.
Pure Cycle is pleased to announce that it has closed on the sale of an additional 127 finished lots during the fourth quarter of its fiscal year ending August 31, 2019, receiving approximately $6.7 million in proceeds. The proceeds represent the final payment for 99 lots under our Lot Development Agreements and full payment for 28 finished lots under our Finished Lot Agreement. In addition, to date, the Company has received $3.0 million in proceeds from the sale of 100 water and wastewater taps.
“Construction activity is progressing very well, and lot sales to our home builders are exceeding expectations,” commented Mark Harding, President and CEO. “We have completed approximately 250 finished lots and have closed on the sale of 210 of these lots,” continued Mr. Harding. “Our builders have sold more than 60 homes now under construction and continue to pursue acceleration of lot deliveries to help meet demand for our exciting community, and we expect to close on the sale of an additional 150 lots during fiscal year 2020,” continued Mr. Harding.
Water Rights Acquisition
In addition, the Company announced that it has purchased 150 acre feet of ditch water rights, 800 acre feet of renewable groundwater rights, 75 acre feet of deep groundwater rights and 260 acres of land in Weld County for $3.5 million. “The valuable renewable water supplies are strategically located such that we anticipate being able to use them to augment our surface water supplies at Lowry to increase the usability of those surface supplies,” commented Mr. Harding. “We continue to look for strategic acquisitions to grow our valuable portfolio of water rights in areas that complement our existing portfolio,” continued Mr. Harding.
Pure Cycle owns land and water assets in the Denver, Colorado metropolitan area. Pure Cycle provides water and wastewater services to customers located in the Denver metropolitan area, including the design, construction, operation and maintenance of water and wastewater systems.
Additional information including our recent press releases and Annual Reports are available at www.purecyclewater.com, or you may contact our President, Mark W. Harding, at 303-292-3456 or at firstname.lastname@example.org.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are all statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect or anticipate will or may occur in the future, such as statements about the timing of additional home lot deliveries, forecasted sales of additional lots during fiscal year 2020, our anticipated ability to use renewable water rights to augment our surface supplies at Lowry and potential strategic acquisitions. The words “anticipate,” “likely,” “may,” “should,” “could,” “will,” “believe,” “estimate,” “expect,” “plan,” “intend” and similar expressions are intended to identify forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual results to differ materially. Factors that could cause actual results to differ from projected results include, without limitation: the possibility that the parties to the builder agreements may be unable to satisfy the conditions to closing the purchase and sale of finished lots, including obtaining required governmental approvals; the completion of finished lots may involve unexpected costs and delays; the demand for housing in the Denver metropolitan area; the possibility that a change of use case for the acquired water rights may be delayed or denied, the availability of water rights to acquire; and the risk factors discussed in Part I, Item 1A of our most recent Annual Report on Form 10-K.
SOURCE: Pure Cycle Corporation
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