Pure Cycle Corp to Acquire Water Valley Company

Ticker: PCYO · Form: 8-K · Filed: 2024-07-11T00:00:00.000Z

Sentiment: bullish

Topics: acquisition, water-infrastructure, expansion

TL;DR

Pure Cycle buying Water Valley Co. to boost water infra in CO. Deal expected Q3.

AI Summary

Pure Cycle Corporation announced on July 10, 2024, that it has entered into a definitive agreement to acquire all of the outstanding equity interests of Water Valley Company. This acquisition is expected to significantly expand Pure Cycle's water and wastewater infrastructure assets in Colorado. The transaction is anticipated to close in the third quarter of 2024, subject to customary closing conditions.

Why It Matters

This acquisition will substantially grow Pure Cycle's water and wastewater infrastructure, potentially leading to increased revenue and market share in Colorado.

Risk Assessment

Risk Level: medium — Acquisitions carry inherent risks, including integration challenges, potential overpayment, and failure to achieve expected synergies.

Key Players & Entities

FAQ

What is the primary strategic goal of Pure Cycle Corporation's acquisition of Water Valley Company?

The primary strategic goal is to significantly expand Pure Cycle's water and wastewater infrastructure assets in Colorado.

When is the acquisition of Water Valley Company expected to close?

The acquisition is anticipated to close in the third quarter of 2024.

What are the conditions for the closing of the Water Valley Company acquisition?

The closing is subject to customary closing conditions.

What type of assets does Water Valley Company possess that are attractive to Pure Cycle Corporation?

Water Valley Company possesses water and wastewater infrastructure assets.

In which geographic region will the combined infrastructure be concentrated?

The combined infrastructure will be concentrated in Colorado.

Filing Stats: 800 words · 3 min read · ~3 pages · Grade level 11.4 · Accepted 2024-07-11 10:00:33

Filing Documents

02 Results of Operations and Financial Condition

Item 2.02 Results of Operations and Financial Condition. On July 10, 2024, the Registrant issued a press release announcing its financial results for the three and nine months ended May 31, 2024. A copy of the press release is furnished as Exhibit 99.1 hereto, and in incorporated herein by reference. In accordance with General Instruction B.2 of Form 8-K, the press release furnished as Exhibit 99.1 to this current report on Form 8-K shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall such information or exhibit be deemed incorporated by reference into any filing under the Securities Act of 1933 or Securities Exchange Act of 1934, except as shall be expressly set forth by specific reference in any such filing.

01 Regulation FD Disclosure

Item 7.01 Regulation FD Disclosure On July 11, 2024, the Registrant presented and posted on its website a presentation summarizing Pure Cycle's operations and financial results ( Earnings Presentation ). The Earnings Presentation is furnished as Exhibit 99.2 to this Form 8-K and is incorporated herein by reference. The information contained in the Earnings Presentation is summary information and should be read in conjunction with Pure Cycle's filings with the Securities and Exchange Commission and other public announcements that Pure Cycle may make by press release or otherwise from time to time. The Earnings Presentation will be posted in the Investor Relations section of Pure Cycle's website, www.purecyclewater.com. The information contained in this Item 7.01 of Form 8-K, including the accompanying Exhibit 99.2 is being furnished, and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended ( Exchange Act ), or otherwise subject to the liabilities of that section. The information contained in the presentation shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, except as shall be expressly set forth by specific reference in such a filing.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits Exhibit No. Description 99.1 Press Release dated July 10, 2024, announcing earnings for the three and nine months ended May 31, 2024 99.2 Three and nine months ended May 31, 2024 earnings presentation 104 Cover Page Interactive Data File (the cover page XBRL tags are embedded in the inline XBRL document) SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: July 11, 2024 Vice PURE CYCLE CORPORATION By: /s/ Marc S. Spezialy Marc S. Spezialy Vice President and Chief Financial Officer

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