Pure Cycle Corporation · NASDAQ:PCYO
Pure Cycle — Merger or Acquisition (August 2010)
16 slides from Pure Cycle's merger presentation, Aug 4, 2010
Slide 1: Acquisition of Sky Ranch Property
Pure Cycle Corporation Acquisition of Sky Ranch Property
Slide 2: Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
“SAFE HARBOR” STATEMENT UNDER THE UNITED STATES PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 Statements that are not historical facts contained in this Presentation are forward looking statements that involve risk and uncertainties that could cause actual results to differ from projected results
Slide 3: Acquisition of Sky Ranch Property: Terms of the acquisition
Pure Cycle Corporation Acquisition of Sky Ranch Property Effective July 30, 2010, Pure Cycle entered into a Loan Sale and Assignment Agreement with the Bank of America (“BofA”) to acquire Sky Ranch. Terms of the acquisition • Purchase P h price i off $7 $7.0 0 million, illi o We are acquiring the no
Slide 4: Sky Ranch: About the Property
Sky Ranch Pure Cycle Corporation About the Property Proposed Export Water Pipeline • Approximately 931 acres • Located along the I‐70 corridor • Approximately 16 miles East of Downtown Denver, and four miles North of the Lowry Lowry Range Range. Property • Zoned Z d for f 4,400 4 400 homes h and d 1
Slide 5: Mixed Use Master Planned Community
Pure Cycle Corporation d Use Master Mixed Planned Community Already zoned and entitled, with conceptual master plans completed and full water and wastewater service agreements in place. Sky Ranch is essentially ready for development as is.
Slide 6: Why is Pure Cycle acquiring land – and why Sky Ranch?
Pure Cycle Corporation Why is Pure Cycle acquiring land – and why Sky Ranch? • Acquisition insures our water (and now wastewater) service contracts associated with Sky Ranch remain intact. o The former developer filed for bankruptcy in 2007, this left our water contract in an unknown status. o Acqui
Slide 7: Anticipated use of the property
Pure Cycle Corporation Anticipated use of the property • We will not build any of the development infrastructure (such as roads, curbs, curbs schools, schools etc.) etc ) ourselves, ourselves these will be built by a home builder / land developer that we will plan to partner with. • Ultimately the m
Slide 8: Anticipated use of the property
Pure Cycle Corporation Anticipated use of the property • Because of our purchase price, we can offer this property at what we believe to be competitive lot/acre prices to developers. o Based on 4,850 SFE’s and 931 acres, at a $7.0 million acquisition price, our cost is approximately $1,440 per lot o
Slide 9: What this purchase does for Pure Cycle's core business – water
Pure Cycle Corporation What this purchase does for Pure Cycle’s core business – water. • Acquiring the property provides certainty to approximately $109.1 million of water tap fees and adds approximately $23.7 million of wastewater tap fees (based on current tap fees of $22,500 $22 500 and $4,883).
Slide 10: What this purchase does for Pure Cycle's core business – water
Pure Cycle Corporation What this purchase does for Pure Cycle’s core business – water. • Annual water usage fees are anticipated to be in excess of $3.5 million at completion, and adds approximately $2.4 million of annual wastewater fees at completion (based on current monthly rates) rates). o Total
Slide 11: What this purchase does for Pure Cycle's core business – water
Pure Cycle Corporation What this purchase does for Pure Cycle’s core business – water. • This Thi land l d purchase h will ill complete l our acquisition i i i off approximately i l 1,000 1 000 acre feet of water rights. o We acquired approximately 90 acre feet of water before the bankruptcy, o Majo
Slide 12: What this purchase does for Pure Cycle's core business – water
Pure Cycle Corporation What this purchase does for Pure Cycle’s core business – water. • We will use the Sky Ranch water to supply water to the first 1,500 taps sold at Sky Ranch. o This means we leave our other water rights intact until approximately 1/3rd of the property is developed. • After the
Slide 13: Other activity update: Lowry Range
Sky Ranch Pure Cycle Corporation Other activity update Initial Lowryy Development – approximately 3,900 Ongoing discussions with acres the State Land Board regarding development of the Lowry Range Property. Lowry Range Conservation parcel – Property approximately 17,000 acres Arapahoe County. Water
Slide 14: Other activity update: Prairie Water Pipeline
Sky Ranch Pure Cycle Corporation Other activity update Prairie Water Pipeline • Discussions with the City of Aurora on the reservoir sites. • Three of our reservoir sites were included in their Water Court Lowry Range filings, along with three Property other sites on locations Aurora Water Treatment
Slide 15: Regional water discussions
Pure Cycle Corporation Regional water discussions South Metropolitan Water Supply S l Authority A th it • 14 area water providers • Integration I t ti off iinfrastructure f t t • Joint development of new supplies • Working with the South Metropolitan Water Supply Authority regarding joint water t d
Slide 16: Acquisition of Sky Ranch Property
Pure Cycle Corporation Acquisition of Sky Ranch Property Ticker symbol: PCYO – traded on the NASDAQ Capital Market Shares Outstanding: 20 million shares Total Assets: $107 million – prior to acquisition, $114 million – after the acquisition Numbers: (P) 303-292-3456 (F) 303-292-3475 Address: 500 E.