Greg Malachowski's questions to Pure Cycle Corp (PCYO) leadership • Q2 2024
Question
Private investor Greg Malachowski asked for an update on the timeline for the next bond issuance and questioned the persistent disconnect between the company's asset value and its stock price, suggesting a strategic review and a more aggressive capital return policy to address the issue.
Answer
Executive Mark Harding explained that a refinancing of Phase 1 bonds is likely late this year or early next, with a new bond issue for Phase 3 probably starting in early 2025. Harding acknowledged deep frustration with the stock's valuation, which is shared by management and the Board. He stated that simply executing the business plan has not translated to market value. While not committing to a formal strategic review, he mentioned the company is actively repurchasing shares, looking to expand its investor outreach, and will host an Investor Day to better communicate the company's value proposition.