Business Description
Pure Cycle Corporation is a Colorado corporation that provides wholesale water
and wastewater services. The wholesale water and wastewater services may include,
but are not limited to, water production, storage, treatment, bulk transmission
to retail distribution systems, wastewater collection and treatment, irrigation
water treatment and transmission, construction management, billing and collection,
and emergency response. We provide these services to our wholesale customers,
which are typically industrial customers and local governmental entities that
provide water and wastewater services to their end-use customers located in the
greater Denver, Colorado metropolitan area.
We are a vertically integrated water company, which means we own all assets
necessary to provide wholesale water and wastewater services to our customers.
This includes owning (i) water rights which we use to provide domestic and irrigation
water to our wholesale customers (we own surface water, groundwater, reclaimed
water rights and water storage rights), (ii) infrastructure (such as wells,
diversion structures, pipelines, reservoirs and treatment facilities) required
to withdraw, treat, store and deliver water, (iii) infrastructure required to
collect, treat, store and reuse wastewater, and (iv) infrastructure required
to treat and deliver reclaimed water for irrigation use.
We currently provide wholesale water service predominantly to two local governmental
entity customers. Our largest customer is the Rangeview Metropolitan District
(the "District"), a quasi-municipal political subdivision of the State
of Colorado which is described further below. We provide service to the District
and its end-use customers pursuant to "The Rangeview Water Agreements"
(defined below) between us and the District for the provision of wholesale water
service to the District for use in the Districts service area. Through the
District, we provide wholesale service to 258 Single Family Equivalent ("SFE")
(as defined below) water connections and 157 SFE wastewater connections located
in southeastern metropolitan Denver. In the past three years, we have been providing
water to industrial customers in our service areas and adjacent to our service
areas to the oil and gas industry for the purpose of hydraulic fracturing. Oil
and gas operators have leased more than 135,000 acres within and adjacent to
our service areas for the purpose of exploring oil and gas interests in the
Niobrara and other formations and this activity has led to increased water demands.
We plan to utilize our significant water assets along with our adjudicated reservoir
sites, which are described in the Our Water and Land Assets section below, to
provide wholesale water and wastewater services to local governmental entities.
These local governmental entities will in turn provide residential and commercial
water and wastewater services to communities along the eastern slope of Colorado
in the area extending essentially from Fort Collins on the north to Colorado
Springs on the south which is generally referred to as the "Front Range."
Principally we are targeting the "I-70 corridor" which is located
east of downtown Denver and south of the Denver International Airport along
Interstate 70. This area is predominately undeveloped and is expected to experience
substantial growth over the next 30 years.
1.57% 
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