Limoneira Company LMNR, a leading agribusiness with prime
agricultural land and operations, real estate and water rights in California,
today announced two asset sale transactions. On April 11, 2013, the Company
completed the sale of 165,000 shares of Calavo Growers, Inc. (“Calavo
Growers”) CVGW common stock to Calavo Growers, who had a right of
first refusal regarding the shares, at a price of $29.02 per share, for net
proceeds of approximately $4.8 million. A $3.1 million gain was recognized on
the sale. The Company continues to own 500,000 shares of Calavo Growers common
stock, which were acquired pursuant to a stock purchase agreement in 2005 for
$10.00 per share.
On April 8, 2103, the Company entered into a purchase and sale agreement of
its non-core East Ridge property in located Santa Barbara County for $6.0
million. The transaction is estimated to generate net proceeds of
approximately $5.7 million. After transaction costs, the Company estimates
that it will incur a non-cash impairment charge of approximately $1.8 million.
The East Ridge property is included in the Company's HM East Ridge LLC equity
investment and was one of four real estate development parcels located in
Santa Maria, California The East Ridge property is approved for 120 single
family homes on approximately 40 acres and also includes approximately 3 acres
that are zoned for commercial use. The Company continues to own three other
parcels in Santa Barbara County within its Temple Santa Barbara LLC subsidiary
that are currently being entitled for development into apartment complexes.
The Company intends to use the net proceeds generated by the Calavo and East
Ridge transactions to reduce its long-term debt and to make strategic
investments into its growth initiatives, including real estate development and
agribusiness expansion.
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