December 20, 2013 (Shareholders Foundation) - An investigation on behalf of current long-term stockholders of shares of Pure Cycle Corporation (NASDAQ:PCYO) was announced concerning whether certain Pure Cycle officers and directors possibly breached their fiduciary duties in connection with certain statements.

The investigation by a law firm concerns whether certain Pure Cycle officers and directors breached their fiduciary duties in connection with their conduct in seeking shareholders approval for the Pure Cycle Corporation 2014 Equity Incentive Plan.

In the Proxy Statement filed by Pure Cycle Corporation with the Securities and Exchange Commission the Board of Directors recommends that Pure Cycles shareholders vote to approve the 2014 Equity Incentive Plan to issue 1,600,000 shares of the Companys common stock.

According to the investigation the issuance of the additional shares could have a severe dilutive effect on the shares of Pure Cycle Corporation.

Pure Cycle Corporation reported that its Total Revenue rose from $0.28 million for the 12 months period that ended on August 31, 2012 to $1.86 million for the 12 months period that ended on August 31, 2013 and that its respective Net Loss declined from $17.42 million to $4.15 million.

Shares of Pure Cycle Corporation (NASDAQ:PCYO) grew from $1.76 per share in early 2012 to as high as $7.17 in May and October 2013.

On December 20, 2013, NASDAQ:PCYO shares closed at $5.93 per share.