Alico, Inc. Announces Sale of Land to State of Florida
September 11 2020 - 8:30AM
Alico, Inc. (“Alico” or the “Company”) (Nasdaq: ALCO) today
announces the State of Florida purchased, under the Florida Forever
program, approximately 10,702 acres of Alico Ranch for $28.5
million pursuant to an option agreement entered into between the
State of Florida and Alico.
John Kiernan, Alico’s President and Chief
Executive Officer, commented, “We are pleased the State of Florida
has purchased this acreage on the west side of the Alico
Ranch. This is the second sales transaction we have completed
with the State of Florida, aggregating over 16,000 acres. As
discussed in our Alico 2.0 Modernization Plan, we continue to
evaluate and sell off ranch assets and generate cashflow to be
used in a manner that will be targeted to allow for a greater
return for our investors. In connection with addressing the
proceeds from this latest sale, we are evaluating several
options including strategic acquisitions, increasing our common
share dividend, and/or selected land acquisitions where we
potentially can take advantage of a like-kind exchange structure,
which would allow us to defer a portion of the taxes related to the
gain from this land sale to the State.”
Mr. Kiernan continued, “Because the acres
involved in the purchase would have been critical to our planned
Alico dispersed water storage project, known as Alico Northern
Everglades Payment for Environmental Services, we have decided to
no longer pursue permit approval activities for that particular
project. However, Alico remains dedicated to preserving
Florida's crucial water resources and intends to explore other ways
to continue to partner with the State of Florida.”
About Alico
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 their
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;
market pricing of citrus; 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; 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; impact of the
COVID-19 outbreak and the coronavirus pandemic on our agriculture
operations, including without limitation demand for product, supply
chain, health and availability of our labor force, the labor force
of contractors we engage, and the labor force of our competitors;
other risks related to the duration and severity of the COVID-19
outbreak and coronavirus pandemic and its impact on Alico’s
business; the impact of the COVID-19 outbreak and coronavirus
pandemic on the U.S. and global economies and financial markets;
access to governmental loans and incentives; any reduction in the
public float resulting from repurchases of common stock by Alico;
changes in equity awards to employees; any increase in the public
float resulting from the distribution by 734 Investors of its
shares to its members; whether the Company's dividend policy,
including its recent increased dividend amounts, is continued;
expressed desire of certain of our stockholders to liquidate their
shareholdings by virtue of past market sales of common stock by
sales of common stock or by way of future transactions; political
changes and economic crises; competitive actions by other
companies; increased competition from international companies;
changes in environmental regulations and their impact on farming
practices; the land ownership policies of governments; changes in
government farm programs and policies and international reaction to
such programs; changes in pricing calculations with our customers;
our ability to make strategic acquisitions; our ability to increase
our common share dividend; our ability to consummate selected land
acquisitions; our ability to take advantage of tax deferral
options; fluctuations in the value of the U. S. dollar, interest
rates, inflation and deflation rates; length of terms of contracts
with customers; impact of concentration of sales to one customer;
and changes in and effects of crop insurance programs, global trade
agreements, trade restrictions and tariffs; and soil conditions,
harvest yields, prices for commodities, and crop production
expenses. 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.This press
release also contain financial projections that are necessarily
based upon a variety of estimates and assumptions which may not be
realized and are inherently subject, in addition to the risks
identified in the forward-looking statement disclaimer, to
business, economic, competitive, industry, regulatory, market and
financial uncertainties, many of which are beyond the Company’s
control. There can be no assurance that the assumptions made
in preparing the projected financial impact will prove
accurate. Accordingly, actual results may differ materially
from the projected financial impact.
Investor Contact:
Investor Relations(646)
277-1254InvestorRelations@alicoinc.com
Richard RalloSenior Vice President and Chief Financial
Officer(239) 226-2000rrallo@alicoinc.com
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