PHOENIX, AZ, March 24, 2015 /CNW/ - GWR Global Water Resources Corp. ("GWRC") (TSX: GWR) today announced that Global Water Resources, Inc. ("Global Water" or the "Company") has reached an agreement (the "Agreement") to sell the assets of Willow Valley Water Company, Inc. ("Willow") to EPCOR WATER ARIZONA INC. ("EPCOR ARIZONA"). GWRC owns an approximate 48.1% interest in Global Water.
The Agreement, which was unanimously approved by the boards of directors of each of GWRC and Global Water, is now subject to approval by the Arizona Corporation Commission ("ACC"). Once approved by the ACC, which could take up to six months, the transaction will close and fund within 30 days.
The material terms of the Agreement are as follows:
- EPCOR ARIZONA to acquire all of the assets of Willow and assume the operations of the utility on closing; and,
- EPCOR ARIZONA will pay to Global Water approximately US$2.5 million at closing. This value will be adjusted to reflect rate base at closing and certain customary post-closing adjustments.
"The disposition of Willow completes the element of our strategic plan to sell non-core assets in order to surface shareholder value and focus Global Water solely on our core areas and business model," said Ron Fleming, President and CEO of Global Water. "We took ownership of Willow as part of our purchase of utilities in western Maricopa County; however, Willow is located hundreds of miles away in Mohave County near Nevada."
"Due to its remote location and other factors, we have been unable to make Willow profitable as part of Global Water's operations," continued Mr. Fleming. "However, because EPCOR has other utility systems in Mohave County, the consolidation of Willow into EPCOR's northwestern operations is a strong fit that will benefit both the system's operations and its customers."
Global Water expects that the closing will occur in late 2015.
About GWR Global Water Resources Corp
GWRC was incorporated in British Columbia to acquire shares of U.S. based Global Water and to actively participate in the management, business and operations of Global Water through its representation on the board of directors of Global Water and its shared management of Global Water. GWRC owns an approximate 48.1% interest in Global Water, a pure-play, high growth, water resources company located in Phoenix Arizona that owns and operates regulated water, wastewater and recycled water utilities.
Cautionary Note Regarding Forward-Looking Statements
This press release includes certain forward-looking statements. These forward looking statements include, but are not limited to the expected timing and completion of the sale of Willow, including the expected timing and completion of the ACC's approval of the sale of Willow, and other statements contained in this release that are not historical facts as well as statements identified by words such as "expects", "anticipates", "intends", "plans", "believes", "seeks", "estimates", or the negative of these terms, or other words of similar meaning. These statements are based on our current beliefs or expectations and are inherently subject to significant uncertainties and changes in circumstances, many of which are beyond our control, including the fact that the expected completion of the sale of Willow is subject to closing conditions, including ACC approval. Actual results may differ materially from these expectations due to changes in global political, economic, business, competitive, market and regulatory factors and other factors discussed under the heading "Risk Factors" in the Company's most recent Annual Information Form. We undertake no obligation to publicly update any forward-looking statement, except as required by law, whether as a result of new information, future developments or otherwise.
SOURCE GWR Global Water Resources Corp.
For further information: Marina Proskurovsky, Investor Relations, Tel: 416.815.0700 ext. 288, Email: [email protected], www.gwresources.com