Pure Cycle Taps Major Shareholder for Board, Signals Strategy Shift

DENVER, CO – January 15, 2026 – Pure Cycle Corporation (NASDAQ: PCYO) announced today a significant addition to its leadership, appointing investor Daniel J. Roller to its Board of Directors. The move, made in cooperation with Mr. Roller’s firm Maran Capital Management, a major shareholder, signals a sharpened focus on strategic direction and capital deployment for the vertically integrated water and land development company.

Effective January 14, 2026, the appointment expands Pure Cycle’s board from seven to eight directors. In a concurrent and telling development, the company will form a new Strategy and Capital Allocation Committee, which Mr. Roller, a seasoned investment manager, has been tapped to chair. This development suggests a proactive effort by the company to leverage outside expertise to maximize the value of its unique and complex asset base.

A Shareholder's Voice in the Boardroom

The appointment is the result of a collaborative effort with Maran Capital Management, which holds a beneficial ownership of approximately 14.7% of Pure Cycle’s common shares. Maran, a Denver-based investment firm founded by Mr. Roller, has been a long-term investor in the company for over five years, positioning this move not as a hostile takeover but as a constructive evolution in the relationship between the company and one of its most significant backers.

“We appreciate our constructive engagement with Pure Cycle and its desire to bring additional capabilities and perspectives to its Board,” Mr. Roller stated in the official announcement. “We have been shareholders for over five years and are excited about the opportunity ahead.”

This partnership has been formalized through a cooperation agreement, which includes customary standstill, voting, and other provisions. While the full details will be disclosed in a Form 8-K filing with the U.S. Securities and Exchange Commission, such agreements typically establish a framework for collaboration, defining the boundaries of the investor's influence while ensuring board stability. It effectively brings a powerful shareholder "inside the tent" to contribute directly to the company's future, a clear signal that both management and the investor see a shared path to value creation.

New Committee to Steer Capital and Strategy

The creation of the Strategy and Capital Allocation Committee, with Mr. Roller at its helm, is arguably the most impactful element of the announcement. This new body will be tasked with scrutinizing how Pure Cycle deploys its financial resources across its diverse operations. This move directly addresses the core competency of Mr. Roller, whose career is built on identifying undervalued assets and optimizing capital to unlock their potential.

Maran Capital’s past investor communications provide a clear window into its thesis for Pure Cycle. In a 2021 letter, the firm articulated its belief that the company’s intrinsic value was significantly higher than its market price, estimating over $10 per share in real estate value and another $10 per share in water value. The firm identified several catalysts, including appreciating land values at the company's Sky Ranch development, rising water tap fees, and the potential for future commercial development.

Mr. Roller’s public comments reinforce this focus. “We believe Pure Cycle has a number of unique assets, including its Sky Ranch development and its extensive portfolio of water assets,” he said. “We look forward to working with Pure Cycle to optimize its strategy and capital allocation as it further develops these assets.” The new committee will likely undertake a deep dive into the financial returns and strategic importance of each business segment, potentially leading to accelerated investment in some areas or strategic shifts in others to maximize long-term shareholder returns.

A Vertically Integrated Model Under Review

Pure Cycle operates a unique, vertically integrated business model that combines three distinct but complementary segments. At its foundation is its role as a wholesale water and wastewater service provider, leveraging its extensive water rights in the arid Denver metropolitan area. This core business provides a crucial underpinning for its second segment: land development.

The company is the master developer of Sky Ranch, a 930-acre master-planned community. Pure Cycle develops and sells finished lots to homebuilders, with the added benefit of providing water and wastewater services to the homes built there, creating a synergistic loop. The company’s latest quarterly report, for the period ending November 30, 2025, showed robust growth, with revenues climbing 59% year-over-year to $9.1 million, largely driven by this land development activity. The company reported its 26th consecutive quarter of positive net income, which rose 16% to $4.6 million.

In 2021, the company launched its third segment: single-family home rentals. By building and retaining ownership of a portfolio of rental homes within Sky Ranch, Pure Cycle aims to generate long-term, recurring revenue streams, further diversify its business, and add more permanent customers to its water utility base. The company currently has 19 homes available for rent and plans to construct an additional 40 units, with a target of 95 rental homes over the next two years. With Mr. Roller’s committee now in place, the capital intensity and return profile of this burgeoning rental business will undoubtedly be a key area of strategic evaluation.

The Investor Behind the Influence

Daniel J. Roller brings more than two decades of investment research and management experience to the Pure Cycle board. Before founding Maran Capital in 2015, he honed his skills as an analyst and portfolio manager at several New York-based hedge funds. His firm, Maran Capital, is known for its disciplined value investing philosophy, focusing on concentrated, long-term investments in publicly traded small-cap companies that it believes are trading at a significant discount to their intrinsic worth.

Mr. Roller's background extends beyond public market investing. He has advised numerous public and private companies on mergers and acquisitions, corporate governance, and strategy, giving him a holistic perspective on corporate value creation. His educational foundation in Electrical Engineering and Computer Science from Duke University provides a quantitative and analytical lens that complements his financial acumen.

This appointment is not his first foray into board service; he also serves as the lead independent director at Horizon Kinetics Holding Corporation. His track record and investment style suggest an approach focused on unlocking fundamental value over a multi-year horizon, aligning his interests with those of other long-term Pure Cycle shareholders. The market will be watching closely to see how this new, influential voice in the boardroom helps shape the next chapter of Pure Cycle's growth.