Shares of Pico Holdings (PICO) slipped after the company provided an update on its strategic review announced in October 2017, saying its board directed financial advisor JMP Securities to conclude the review process and determined that the company should continue to execute its current business plan.

WHAT'S NEW: Pico announced on October 2, 2017, that its board engaged JMP Securities to explore strategic alternatives after the company was approached by a "large and well-respected institution" that indicated an interest in exploring potential financial and strategic partnerships or purchasing the company. JMP approached over 160 possible financial and strategic investors, including private equity funds, publicly traded entities, infrastructure investors, endowments and other institutions, and family offices, Pico said. Of these parties, 34 executed non-disclosure agreements and were provided with detailed materials regarding the company's assets and operations. After the review, however, Pico's board concluded that it did not believe any such expressions of interest would provide adequate value to Pico's shareholders for the company or its assets. Therefore, the board directed JMP to conclude the strategic review process and determined the company should continue to execute its current business plan of monetizing assets and returning proceeds to shareholders. Pico said it will continue to explore additional initiatives designed to increase current cash flows, including the company's ongoing cost-cutting, monetization of non-core assets, creative exploitation of core assets and consideration of transactions that present sound economic and strategic value that might arise in the course of the current business plan.

BOARD CHANGES: In addition, Pico announced today that lead independent director Daniel Silvers informed the company that he will not seek re-election as a director when his annual term ends at the company's annual meeting that is being held on May 3. The company also said that the board appointed, with immediate effect, two new directors: Nicole Weymouth, an environmental planner, and Dorothy Timian-Palmer, president and chief executive officer of the company's wholly-owned subsidiary Vidler Water Company. Additionally, Weymouth and Timian-Palmer were nominated for election by shareholders at the annual meeting. 

PRICE ACTION: In afternoon trading, Pico fell 13.1% to $10.78.