Alico and Mr. Remy Trafelet Reach Amicable Resolution
February 11 2019 - 4:15PM
Alico, Inc. (“Alico” or the “Company”) (Nasdaq “ALCO”) today
announced that it has entered into a settlement agreement with Mr.
Remy W. Trafelet and certain of his affiliates, along with certain
members of the Alico Board of Directors (the “Board”), to dismiss
the pending litigation in the Circuit Court of the Thirteenth
Judicial Circuit in and for Hillsborough County, Florida captioned
734 Agriculture, LLC v. Brokaw, Case No. 18-CA-011294.
Separately, Mr. Trafelet and certain of his affiliates have entered
into a settlement agreement with certain members of 734 Investors,
LLC, the Company’s largest shareholder, to dismiss related pending
litigation in Delaware.
In accordance with the settlement agreement, which was
unanimously approved by the Board, Mr. Trafelet has resigned from
his roles as president and chief executive officer and a director
of the Company. Mr. Trafelet remains one of the largest
individual beneficial holders of the Company’s stock. The
parties to the settlement jointly determined that such an agreement
was in the best interests of Alico and its shareholders and was
beneficial for all parties. Mr. Trafelet has agreed to
provide consulting services to the Company following his departure,
so that Alico can continue to benefit from his input, in particular
regarding the Alico 2.0 modernization program, which
has transformed three legacy businesses into a single
efficient enterprise, Alico Citrus – one of the leaders in the U.S.
citrus industry.
Mr. Hank Slack, executive chairman of the Board, said: “We are
pleased to have reached a constructive agreement with Mr.
Trafelet. On behalf of the Board and the entire Alico team, I
want to thank Remy for his service and his many contributions to
the growth of Alico. I particularly want to commend him for
his implementation of Alico 2.0 and for his hard work and
dedication to this successful initiative.”
Mr. Trafelet said: “I am proud of our work over the last two
years to transform Alico, driving material improvements in
efficiency and profitability to the benefit of shareholders. With
today’s resolution, I look forward to seeing the Company continue
to prosper.”
Mr. Benjamin D. Fishman will continue serving as the interim
president of Alico. Arlon Valencia Holdings, LLC, of which
Mr. Fishman is an affiliate, will serve as Managing Member of 734
Investors, LLC.
The settlement agreement will be filed by the Company with the
U.S. Securities and Exchange Commission.
About Alico, Inc.
Alico, Inc. primarily operates two divisions: Alico Citrus, one
of the nation’s largest citrus producers, and Alico Water Resources
and Other Operations, a leading water storage and environmental
services division. Learn more about Alico (Nasdaq “ALCO”) at
www.alicoinc.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 Alico’s
current expectations about future events and can be identified by
terms such as “plans,” “expect,” “may,” “anticipate,” “intend,”
“should be,” “will be,” “is likely to,” “believes,” and similar
expressions referring to future periods.
Alico 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, Alico 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, regulation and rules; weather conditions that
affect production, transportation, storage, demand, import and
export of fresh product and its by-products; increased pressure
from diseases including citrus greening and citrus canker, as well
as 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 rates; availability of
financing for land development activities and other growth and
corporate opportunities; onetime events; acquisitions and
divestitures; seasonality; our ability to achieve the anticipated
cost savings under the Alico 2.0 Modernization Program; customer
concentration; labor disruptions; inability to pay debt
obligations; inability to engage in certain transactions due to
restrictive covenants in debt instruments; government restrictions
on land use; changes in agricultural land values; and market and
pricing risks due to concentrated ownership of stock. Other risks
and uncertainties include those that are described in Alico’s SEC
filings, which are available on the SEC’s website at
http://www.sec.gov. Alico undertakes no obligation to subsequently
update or revise the forward-looking statements made in this press
release, except as required by law.
Press Contact
John E. KiernanExecutive Vice President and Chief Financial
Officer(239) 226-2000JKiernan@alicoinc.com
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