DENVER, Aug. 4, 2010 (GLOBE NEWSWIRE) -- Pure Cycle Corporation (Nasdaq:PCYO) announced effective July 30, 2010, it has entered into an agreement which will allow it to acquire the 931-acre Sky Ranch Property for $7.0 million in cash. The transaction is expected to close within 60 days; however, we can terminate the agreement for any reason during this 60 day period if we so chose.
In 2003 and 2004, we entered into two water service agreements and a groundwater purchase agreement with the developer of Sky Ranch. However, the developer entered into bankruptcy in 2007, which resulted in uncertainty regarding these agreements. Mark Harding, the President and CEO of Pure Cycle, stated that, "By acquiring the property we remove the uncertainties created by the bankruptcy and ensure that we are the water provider to the property once it is developed." Mr. Harding further commented that, "In addition to solidifying our existing water service agreements, this acquisition expands our opportunity to include wastewater service to the property, allows us to complete our acquisition of the water rights at Sky Ranch, and facilitates our use of highly treated wastewater effluent, distributed through a dedicated reclaimed water distribution system, to meet outdoor irrigation demands. The inclusion of wastewater will enable us to implement our environmentally sensitive water recycling operations reusing highly treated effluent water supplies distributed through a dedicated water distribution system to provide water for outdoor irrigation demands. Protecting, using and reusing Colorado's valuable water resources, demonstrates our commitment to environmentally responsible stewardship over this scarce and limited resource." As the owner of both the property and the water rights which will be used to provide services to the property when it is developed, we have positioned ourselves to offer developers an integrated, cost effective and ready for development package, and thus Sky Ranch represents an important strategic acquisition for us. We believe we have secured private financing for this acquisition. The terms of such financing will be announced once finalized.