LA JOLLA, Calif., Dec. 05, 2017 (GLOBE NEWSWIRE) -- 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.
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.
Chief Executive Officer
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Source: PICO Holdings Inc.