LOS ANGELES--(BUSINESS WIRE)--
Cadiz Inc. (NASDAQ: CDZI) ("Cadiz") and Limoneira Company (NASDAQ: LMNR)
("Limoneira") are pleased to announce today that they have entered into
a long-term lease agreement (the "Agreement") to develop new lemon
orchards on Cadiz's agricultural property in eastern San Bernardino
County, California (the "Cadiz Ranch"). Under the terms of the
Agreement, Limoneira has secured the right to plant up to 1,280 acres of
lemons over the next five years at the Cadiz Ranch operations in the
Cadiz Valley. The arrangement provides a new growing, packing, and
marketing opportunity that is complementary to Limoneira's existing
production and furthers Cadiz's commitment to the sustainable
development of its Cadiz Valley property.
The Agreement provides that Limoneira will initially plant 320 acres of
lemons at the Cadiz Ranch and will also hold options to plant up to 960
additional acres by 2018. Cadiz will provide Limoneira access to water
at the property to irrigate its farmed acreage according to sustainable
agricultural practices. All leased property will be located in the Cadiz
Valley on land that offers farming and water supply infrastructure, but
is currently unplanted. As a result of the Agreement, the vast majority
of previously cultivated land at the Cadiz Ranch could return to active
farming.
"This new lease arrangement continues our commitment to sustainable
agriculture in the Cadiz Valley and offers the company and the local
economy positive farming opportunities that can be developed in
cooperation with our existing plans for the Cadiz Valley," said Tim
Shaheen, CEO of Cadiz Real Estate LLC, a wholly-owned subsidiary of
Cadiz. "Limoneira is a leading grower and marketer of lemons and adheres
to best agricultural practices throughout its operations, making it an
ideal partner for Cadiz."
In consideration for the lease arrangement, Limoneira will provide Cadiz
an annual rental payment and water supply payment. The rental payment
will include a base rent of $200 per planted acre and a lease payment
equal to 20% of net cash flow from the harvested crops grown on Cadiz
property. The annual rental payment will not exceed a total of $1,200
per acre. The Agreement also provides a tag right for Limoneira to
redirect water that would otherwise be used for lemons on its leased
acreage to a 500 acre-foot participation right in the Cadiz Valley Water
Conservation, Recovery and Storage Project (the "Water Project"), which
was approved last year.
"We are very excited to partner with Cadiz and leverage our core
competencies to develop new lemon orchards on its agricultural
property," stated Harold Edwards, President and Chief Executive Officer
of Limoneira. "Integrating this property into Limoneira's portfolio of
high quality agricultural properties represents another significant
growth milestone for our 120-year-old company. We expect to begin
generating revenue from the first phase of 320 acres of lemons in 2018.
Mr. Edwards continued, "This agreement represents an important component
of our global growth strategy to expand our productive agriculture
acreage and leverage our expertise and existing infrastructure to drive
top-line growth and increase our profitability."
In the Cadiz Valley, 9,600 acres is currently zoned for agricultural
development and Cadiz has developed a total of 1,920 acres of its
property for agricultural operations. Currently, the property has
approximately 600 acres of grapes and lemons under cultivation. All
crops are cultivated following sustainable agricultural practices and
irrigated in accordance with monitoring provisions overseen by the
County of San Bernardino. Limoneira's new plantings and groundwater use
will comply with Cadiz's existing groundwater and land use approvals and
abide by the County-approved groundwater management plan for the Water
Project, once it becomes operational.
About Cadiz Inc.
Founded in 1983, Cadiz Inc. is a publicly-held land and water resource
development company that owns 70 square miles of property with
significant water resources in eastern San Bernardino County,
California. The Company is engaged in a combination of organic farming
and water supply and storage projects, including the Cadiz Valley Water
Conservation, Recovery & Storage Project which will deliver a new,
reliable water supply throughout Southern California. Cadiz abides by a
wide-ranging "Green Compact" focused on environmental conservation and
sustainable management practices at its properties. For more information
about Cadiz, visit www.cadizinc.com.
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 8,000
acres of rich agricultural lands, real estate properties and water
rights in California. 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 STATEMENT:
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 Cadiz's and Limoneira's (the
"Companies") 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. The Companies believe 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, the Companies
caution 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 the Companies'
respective SEC filings, which are available on the SEC's website at http://www.sec.gov.
The Companies undertake no obligation to subsequently update or revise
the forward-looking statements made in this press release, except as
required by law.
Cadiz Inc.
Courtney Degener
213-271-1600
or
Limoneira
Company:
ICR
John Mills, Senior Managing Director
310-954-1105
Source: Limoneira Company
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