- Transaction In Line With Strategy of Divesting Non-Core Assets -
- Proceeds From the Sale Will be Used to Reduce Borrowings -
SANTA PAULA, Calif.--(BUSINESS WIRE)--
Limoneira Company (NASDAQ: LMNR), a leading agribusiness with prime
agricultural land and operations, real estate and water rights
throughout California, closed on the sale of its Donna Circle property
in Paradise Valley, Arizona, on May 18, 2011. The Company had been
leasing the property until April 14, 2011. The property was sold for
$2,275,000 cash, and the Company realized net cash of approximately
$2,080,000, after selling and other costs. The Company plans to use the
net proceeds from the transaction to pay down its debt. As a result of
the sale, the Company will recognize a non-cash impairment charge of
approximately $203,000 in the second quarter of fiscal year 2011.
As previously announced, in August 2010, the Company sold its other
property in Paradise Valley, Arizona, Cactus Wren, for $3 million cash.
With the sale of the Donna Circle property, the Company has completed
its divestiture of its non-core real estate assets in
Arizona.
Harold Edwards, President and Chief Executive Officer, stated, "We are
pleased with the sale of our Donna Circle property. The sale is
consistent with our goal to divest our business of our non-core assets
and use the proceeds from these sales to reduce our debt. With the sale
of Donna Circle and our Cactus Wren sale last year, we have now divested
all of our properties in Arizona, which will allow our team to fully
focus on our core operations of expanding our agribusiness and
capitalizing on real estate development opportunities in California."
About Limoneira Company
Limoneira Company, a 117-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 6,850
acres of rich agricultural lands, real estate properties and water
rights throughout California. The Company is a leading producer of
lemons, avocados, oranges, and other specialty 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 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; increased costs from becoming a public company; 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.
Investor Contact:
ICR
John Mills
Senior Managing
Director
310-954-1105
Source: Limoneira Company
News Provided by Acquire Media
