DENVER, CO / ACCESSWIRE / August 30, 2021 / Pure Cycle Corporation (NASDAQ:PCYO) is excited to announce that it has closed on the sale of 152 platted lots at its master planned community Sky Ranch. This represents the first closing of lots in the next development phase of Sky Ranch.
The second phase of development at Sky Ranch totals 804 lots, all of which are contracted with homebuilders. This phase is divided into four subphases for development and accounting purposes, and this closing is only on the first of those subphases. Additionally, this closing was with three of the four builders as the fourth builder is on a finished lot contract, meaning closing those 67 lots will occur when the lots are ready for construction, anticipated to be in the late second or early third quarter of our fiscal 2022.
As consideration for this closing the three builders made their first milestone payments totaling $3.6 million. The next two milestone payments, which are due at completion of wet utilities and completion of the lots, are expected to occur over the next several months and could include price escalators per the sale contracts.
"Our lot development agreements provide efficient use of capital for both Pure Cycle and our homebuilder partners to pay for the investments to improving lots on a real-time basis. It allows Pure Cycle the ability to deliver lots efficiently at affordable prices and provides our homebuilder partners assurances they have tangible deliveries with each milestone payment," commented Mark Harding, President of Pure Cycle. "Sky Ranch continues to thrive, delivering a much needed and valuable product to this quickly growing area. Pure Cycle's contractors have been onsite since February working diligently to finish model home lots before the end of the calendar year in time for opening our second phase early next year" concluded Mr. Harding.
Pure Cycle is a diversified land and water resource development company. At our core we are an innovative and vertically integrated wholesale water and wastewater service provider that, in addition to developing wholesale water and wastewater services, develops a master planned community on land we own and to which we provide water and wastewater services.
Additional information including our recent press releases and SEC filings are available at www.purecyclewater.com, or you may contact our President, Mark W. Harding, or our CFO, Kevin B. McNeill, at 303-292-3456 or at [email protected].
Be sure to follow Pure Cycle on Twitter @purecyclecorp.
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 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 estimates lot sales, home sales and timing of completion of home sales at Sky Ranch. 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: delays in obtaining necessary governmental approvals for final entitlements; the availability of construction companies and equipment; changes in the housing market; the risk factors discussed in Part I, Item 1A of our most recent Annual Report on Form 10-K and Part II, Item 1A of our Quarterly Report on Form 10-Q for the quarter ended May 31, 2021; and those factors discussed from time to time in our press releases, public statement and documents filed or furnished with the U.S. Securities and Exchange Commission. Except as required by law, we disclaim any obligation to update publicly any forward-looking statements, whether because of new information, future events or otherwise.
SOURCE: Pure Cycle Corporation