Thursday
March 1, 2007
PICO Holdings, Inc. Raises $104.5 Million In Private Placement of Common
Stock
Source: PRNewswire
These shares have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from these registration requirements. PICO has agreed to file a Form S-3 registration statement with the Securities and Exchange Commission to register the resale of the newly-issued 2,823,000 shares of common stock after the closing of the transaction.
PICO's President and Chief Executive Officer, John Hart, stated:
"There was substantial interest for this offering, which we placed with several premier financial institutions. The proceeds will be used primarily by our water resource subsidiary, Vidler Water Company, to acquire further strategic water assets for groundwater development in the southwest United States as well as to provide for infrastructure costs to improve, expand and develop production, storage and reclamation activities to generate additional water supplies. As growth continues to occur in the Southwest, demand for scarce water resources increases. With this additional capital and as a leading private developer of water resources, Vidler is well positioned to help resolve these shortages."
About PICO Holdings, Inc.
PICO is a diversified holding company. PICO seeks to build and operate businesses where significant value can be created from the development of unique assets, and to acquire businesses which we identify as undervalued and where our participation can aid in the recognition of the business's fair value, as well as create additional value.
Our objective is to maximize long-term shareholder value. We manage our operations to achieve a superior return on net assets over the long term, as opposed to short-term earnings. For example, we have been operating two of our major subsidiaries, Vidler Water Company, Inc. and Nevada Land and Resource Company, LLC, for over 10 years. Vidler Water Company, Inc. develops and owns water resources and water storage operations in the southwestern United States, primarily in Nevada and Arizona. Nevada Land & Resource Company, LLC, currently owns property in Nevada, and certain mineral rights and water rights related to the property.
