Pure Cycle Corporation Announces Receipt of $23.6 Million Bond Offering from Second Sky Ranch Community Authority Board of Directors

DENVER, CO/ACCESSWIRE/August 24, 2022/ Pure Cycle Corporation (NASDAQ: PCYO) (Pure cycle) the Sky Ranch Community Authority Board of Directors announced today (Sky Ranch TAXI) successfully closed its second municipal bond financing totaling $29.7 million, which earned Sky Ranch CAB $23.6 million after fees, capitalized interest and expenses. After closing, Sky Ranch CAB repaid Pure Cycle $23.6 million in public improvement repayments and associated interest.

The Sky Ranch CAB, a political subdivision and public corporation of the State of Colorado responsible for building, designing and financing public improvements to the main Sky Ranch planned community, successfully sold senior bonds to tax-exempt fixed rate bonds in aggregate nominal amount of $23.3 million and tax-exempt fixed rate subordinated notes in aggregate nominal amount of $6.4 million, which generated a net proceeds of $23.6 million, which was available to repay funds Pure Cycle advanced to the Sky Ranch CAB for public improvements, with accrued interest.

“Despite a challenging bond market due to rising interest rates, with the Sky Ranch CAB team as well as Phase 2 of the Sky Ranch development having higher credit than competing offerings, we were able to close the second bond issue with good terms and above our projected size,” commented Mark Harding, president of Pure Cycle.

“CAB underwriter DA Davidson successfully placed the bonds in a contracting bond market at competitive rates. This second bond issue brings the total municipal bonds issued by the Sky Ranch CAB to $42.9 million. dollars, which is a testament to the strength and success of our Sky Ranch Master Planned Community.We continue to complete lots and our home builders continue to benefit from strong demand for entry-level homes at Sky Ranch. The initial development phase at Sky Ranch (with 509 homes) is sold out, and we are completing lots in Sky Ranch Phase 2A (229 lots for this sub-phase). Due to the success of our first phase, our second phase includes a broader line of products, including mixed residential products with multiple product offerings, all aimed at the entry-level home buyer,” concluded Mr. Harding.

Company Information

Pure Cycle continues to diversify its business, grow its balance sheet and generate recurring revenue. We operate in three distinct business areas, which complement each other. At its core, we are an innovative, vertically integrated wholesale water and sanitation service provider. In 2017, we launched our land development business which develops planned communities on land we own and to which we provide water and sanitation services. In 2021, we launched our new line of business, Sky Ranch Single Family Home Rentals, which provides long-term recurring revenue, strengthens our land development operations and adds more customers to our resource business. in water.

Additional information, including our recent press releases and SEC filings, is available at www.purecyclewater.com, or you can contact our Chairman, Mark W. Harding, or our Chief Financial Officer, Kevin B. McNeill , at 303-292-3456 or [email protected] Be sure to follow Pure Cycle on Twitter @purecyclecorp.

Forward-looking statements

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 following: development schedule at Sky Ranch; and touch sales and home sales by our home builder clients. The words “anticipate”, “probably”, “may”, “should”, “could”, “shall”, “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, but are not limited to: mortgage interest rates and other factors affecting the housing market and home sales; the risk factors discussed in Part I, Item 1A of our most recent Annual Report on Form 10-K for the year ended August 31, 2021; and factors discussed from time to time in our press releases, public statements and documents filed with or furnished to the United States Securities and Exchange Commission. Except as required by law, we disclaim any obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

THE SOURCE: Pure Cycle Corporation

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https://www.accesswire.com/713283/Pure-Cycle-Corporation-Announces-Receipt-of-236-Million-From-Second-Sky-Ranch-Community-Authority-Board-Bond-Offering

Luisa D. Fuller