Sale Generated Net Cash of $6 Million
Transaction In-Line with Company's Long-Term Strategy to Streamline Non-Synergistic Assets
Limoneira Company (the "Company" or "Limoneira") (NASDAQ:LMNR), a diversified citrus packing, sales and marketing company with related agribusiness activities and real estate development operations, today announced the sale of its real estate asset referred to as "Lindsay Central Valley" located in Lindsay, CA. The transaction closed on August 26, 2020 and the Company received approximately $6.0 million in net proceeds. In addition, the Company will record a one-time, non-cash loss of approximately $0.3 million in its third fiscal quarter of 2020 related to this sale.
The Lindsay property consists of 291 acres of orange and specialty citrus groves located in the Central Valley of California. During the Company's continuous review of its strategic initiatives, it was determined that this property is not aligned with the Company's other orange and specialty citrus properties.
Harold Edwards, President and Chief Executive Officer, stated, "We are pleased with the sale of our Lindsay property which is in-line with our long-term strategy to streamline non-synergistic assets that do not meet our longer-term goals. As with prior sales of non-synergistic assets, we will use the cash generated by the sale to pay down debt and to invest in the growth of our core agribusiness."