PICO Holdings, Inc. Announces Agreement to Sell Up to 15,000 Long Term Storage Credits in Arizona
December 05 2017 - 4:15PM
PICO Holdings, Inc. (NASDAQ:PICO) announced today that its
wholly-owned subsidiary, Vidler Water Company, Inc., has entered in
to an agreement to sell up to 15,000 Long Term Storage Credits
(“LTSC”) stored in the Phoenix Active Management Area of Arizona to
the Roosevelt Water Conservation District (“RWCD”) for a base price
of $350 per LTSC. Under the agreement, the LTSCs may be purchased
by RWCD at any time over the term of the agreement which expires on
December 31, 2019. Any purchases prior to December 31, 2017 will be
at the base price of $350 per LTSC and any purchases of LTSCs under
this agreement beginning January 1, 2018 will be at a price that is
increased from the base price at 10% per annum.
Dorothy Timian - Palmer, Vidler’s CEO
commented:
“With the sales in January of this year at $250
per LTSC, this new agreement demonstrates not only how necessary
our remaining LTSCs are in providing water solutions to
stakeholders in Arizona responsible for firming up future water
supplies, but also the value of this resource in the market place.
We are very pleased to continue our relationship with RWCD and help
them resolve their water supply issues.”
About PICO Holdings, Inc.PICO
Holdings is a diversified holding company. The Company recently
announced that the Company's Board of Directors had engaged JMP
Securities LLC as PICO’s exclusive financial advisor and Cooley LLP
as PICO’s legal counsel to explore strategic alternatives to
further enhance shareholder value. The intention of the engagements
is to evaluate potential alternatives such as the sale of the
Company, a merger, a business combination, or a sale, license or
disposition of assets of the Company.
OTHER INFORMATION
At September 30, 2017, PICO Holdings,
Inc. had a market capitalization of $386.6 million, and
23,146,823 shares outstanding.
CAUTIONARY NOTE REGARDING
FORWARD-LOOKING STATEMENTS
Certain statements contained in this press
release (other than statements of historical fact) are
forward-looking statements. Words such as "believe," "estimate,"
"expect," "intend," "anticipate," "will," "could," "may," "should,"
"plan," "potential," "predict," "forecast," "project," and similar
expressions and variations thereof identify certain of such
forward-looking statements, which speak only as of the dates on
which they were made. Although forward-looking statements are made
based upon management's expectations and beliefs concerning future
developments and their potential effect upon the Company, a number
of factors could cause the Company's actual results to differ
materially from those set forth in the forward-looking statements.
Such factors may include uncertainties associated with RWCD’s
actual purchase of LTSCs, our proceeds, if any, from the agreement
with RWCD, our ability to enhance shareholder value through
strategic alternatives, as well as the uncertainties and risk
factors discussed in our Annual Report on Form 10-K for the fiscal
year ended December 31, 2016 and in our Quarterly Report on Form
10-Q for the quarter ended September 30, 2017, each filed with the
Securities and Exchange Commission. There can be no assurance that
future developments will be in accordance with management's
expectations or that the effect of future developments on the
Company will be those anticipated by management.
CONTACT:Max WebbChief Executive Officer858 652
4114
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