Sale Expected to Generated Net Cash of $8.1 Million, Plus Interest
Transaction In-Line with Company's Long-Term Strategy to Monetize
Non-Core Real Estate Assets
Company Provides Update on East Area 1 and 2 Progress
SANTA PAULA, Calif.--(BUSINESS WIRE)--
Limoneira Company (NASDAQ: LMNR), a leading agribusiness with prime
agricultural land and operations, real estate and water rights in
California and Arizona, announced today that it has entered into
agreements to sell its Sevilla and Pacific Crest properties located in
Santa Maria, California. Both properties are being sold to the same
buyer and the combined purchase price of the two properties is $8.3
million. Upon the execution of the purchase and sale agreements, the
buyer will deposit $250,000 into escrow and issue a note receivable for
each property leaving a combined amount due of $7.8 million. The notes
are due on the earlier of the approval of the properties' tract maps by
the City of Santa Maria or October 24, 2014. The Company will collect 5%
interest on the notes. There will be a 90-day due diligence and escrow
period for the transaction, which is expected to close March 2014. Upon
full payment of the notes receivable, the Company expects to receive
$8.1 million net cash in addition to interest earned on the notes. The
Company continues to own its Centennial property in Santa Maria.
Harold Edwards, the Company's President and Chief Executive Officer,
stated, "We are pleased with the terms of the sale of our Santa Maria
properties. We will use the cash generated by the sale to pay down our
debt and to invest in the growth of our agribusiness and other strategic
initiatives. This transaction is in-line with our long-term strategy to
opportunistically monetize our rich portfolio of assets."
Mr. Edwards continued, "Based on the discussions with developers and
homebuilders, we believe we are well positioned to break ground on our
East Areas 1 and 2 projects in calendar 2014 and begin home sales in
calendar 2015. We are in the process of evaluating the alternatives that
have been proposed to us and will provide an additional update on our
progress during the fiscal fourth quarter earnings call in January 2014.
We estimate the approximately 1,500 units planned to be built on East
Area 1 represent approximately 25% of all single family homes, townhomes
and condominiums that are currently in construction, planned or approved
in Ventura County. As the development progresses, we look forward to
additional cash flow generated by the project."
About Limoneira Company
Limoneira Company, a 120-year-old international agribusiness
headquartered in Santa Paula, California, has grown to become one of the
premier integrated agribusinesses in the world. Limoneira (pronounced lē
mon΄âra) is a dedicated sustainability company with approximately 10,000
acres of rich agricultural lands, real estate properties and water
rights in California and Arizona. The Company is a leading producer of
lemons, avocados, oranges, specialty citrus and other crops that are
enjoyed throughout the world. For more about Limoneira Company, visit www.limoneira.com.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. These
forward-looking statements are based on Limoneira's current expectations
about future events and can be identified by terms such as "expect,"
"may," "anticipate," "intend," "should be," "will be," "is likely to,"
"strive to," and similar expressions referring to future periods.
Limoneira believes the expectations reflected in the forward-looking
statements are reasonable but cannot guarantee future results, level of
activity, performance or achievements. Actual results may differ
materially from those expressed or implied in the forward-looking
statements. Therefore, Limoneira cautions you against relying on
any of these forward-looking statements. Factors which may cause future
outcomes to differ materially from those foreseen in forward-looking
statements include, but are not limited to: changes in laws,
regulations, rules, quotas, tariffs and import laws; weather conditions
that affect production, transportation, storage, import and export of
fresh product; increased pressure from crop disease, insects and other
pests; disruption of water supplies or changes in water allocations;
pricing and supply of raw materials and products; market responses to
industry volume pressures; pricing and supply of energy; changes in
interest and currency exchange rates; availability of financing for land
development activities; political changes and economic crises;
international conflict; acts of terrorism; labor disruptions, strikes or
work stoppages; loss of important intellectual property rights;
inability to pay debt obligations; inability to engage in certain
transactions due to restrictive covenants in debt instruments;
government restrictions on land use; and market and pricing risks due to
concentrated ownership of stock. Other risks and uncertainties
include those that are described in Limoneira's SEC filings, which are
available on the SEC's website at http://www.sec.gov.
Limoneira undertakes no obligation to subsequently update or revise the
forward-looking statements made in this press release, except as
required by law.
ICR
John Mills
Senior Managing Director
310-954-1105
Source: Limoneira Company
News Provided by Acquire Media
