Limoneira Reports Sale of East Ridge, Calavo Growers Stock for Total Proceeds $10.5M

Limoneira Company

, 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”)

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.