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PICO Holdings, Inc. Announces Update on the Strategic Review and Board Changes
PICO’s Board of Directors (the “Board”) instigated the strategic review process after being approached by a large and well - respected institution that indicated an interest in exploring potential financial and strategic partnerships or purchasing the Company. JMP was selected by the Board from among several possible financial advisors to solicit potential buyers, joint venture partners, and parties which might propose other transactions relating to
Of those interested parties that executed non - disclosure agreements, several expressed further interest which was pursued by the Board and JMP. After careful review, the Board concluded that it did not believe any such expressions of interest would provide adequate value to PICO’s shareholders for the Company or its assets. Therefore, the Board directed JMP to conclude the strategic review process and determined the Company should continue to execute its current business plan of monetizing assets and returning proceeds to shareholders.
Despite the conclusion of the strategic review process, the Board believes the Company has unique and valuable water resource assets in the southwest of
The Company will also continue to explore additional initiatives designed to increase current cash flows, including the Company’s ongoing cost-cutting (including a potential reorganization of the Company, board fees and other expense reductions), monetization of non - core assets, creative exploitation of core assets, and consideration of transactions that present sound economic and strategic value that might arise in the course of the current business plan.
The Company also announced today that
“On behalf of the Board, I wish to thank Dan for his dedicated and highly-professional service to the Company and its shareholders since joining the Board almost two years ago. Dan has been instrumental in the progress made by the Company in that time period and his experience and wisdom have been invaluable to me and the rest of the Board. We all wish him well and thank him for a job well done.
“We are pleased to announce the nominations of Nicole and Dorothy to the Board. The addition of these two individuals brings diverse areas of expertise which we believe will be essential for the Board as the Company continues to execute on its business plan of monetizing its assets. Nicole is an experienced environmental planner who works for
Mr. Silvers stated: “It has been a great pleasure and privilege to serve on the Board. The Company has made significant progress in that period and I am pleased with what we accomplished. I wish the Company well as it builds upon these accomplishments in seeking to execute its business plan.”
Additional information regarding the appointment of Ms. Weymouth and Ms. Timian-Palmer as directors can be found in the Current Report on Form 8-K filed today by the Company with the
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Statements in this press release that are not historical, including statements regarding our business plan and the maximization of the value of our assets, are forward-looking statements based on current expectations and assumptions that are subject to risks and uncertainties.
A number of factors may cause results to differ materially from our expectations, such as: any slow down or downturn in the housing recovery or in the real estate markets in which Vidler operates; fluctuations in the prices of water and water rights; physical, governmental and legal restrictions on water and water rights; a downturn in some sectors of the stock market; general economic conditions; prolonged weakness in the overall U.S. and global economies; the performance of the businesses; the continued service and availability of key management personnel; and potential capital requirements and financing alternatives.
For further information regarding risks and uncertainties associated with our business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of our
We undertake no obligation to (and we expressly disclaim any obligation to) update our forward-looking statements, whether as a result of new information, subsequent events, or otherwise, in order to reflect any event or circumstance which may arise after the date of this press release, except as may otherwise be required by law. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
Important Additional Information and Where to Find it
The Company, its directors and certain of its executive officers and employees may be deemed to be participants in the solicitation of proxies from stockholders in connection with the Annual Meeting. The Company plans to file a proxy statement with the
Stockholders will be able to obtain the 2018 Proxy Statement, any amendments or supplements to the proxy statement and other documents filed by the Company with the
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Source: PICO Holdings Inc.