LaBelle, FL, December 27, 2006 -- Alico, Inc. (NASDAQ:ALCO), a land management company, announced today that its Subsidiary, Alico-Agri, Ltd. has entered into two restructured contracts with The Ginn Development Companies and its associated partner Lubert-Adler Real Estate Opportunity Fund, of Philadelphia, PA for the sale of Alico-Agri's property in Lee County, Florida.
The original contracts were entered into in 2001 and 2003, respectively, for approximately 5,609 acres near Bonita Springs, Florida. The total contract prices are $62.9 million for Ginn East and $75.5 million dollars for Ginn West, totaling over $138 million. Each contract required a10% initial deposit with future payments to correspond with certain zoning approvals.
The amended and renegotiated contracts that were executed set September 28, 2007 as the date certain for payments to Alico-Agri to begin on both the Ginn East and Ginn West contracts and require annual payments for four (4) years to satisfy full payment. Additionally, the interest rate was renegotiated upward to 4% on the Ginn East Contract. There are provisions in the Ginn West Contract for time extensions, if necessary, effectively extending the outside payment date on the Ginn West Parcel from 2010 to 2014. If the time extensions are exercised by Ginn, annual option payments are required, which could total over $16 million, bringing the total proceeds from the two contracts to over $154 million. The Company is filing an 8K containing more details concerning the modifications.
Alico Chairman and CEO John Alexander stated that he was pleased that the Ginn contracts could be restructured in a mutually acceptable fashion creating a win-win scenario for each party and for the community. "We continue to be excited about the benefits that the Ginn communities will bring to the Ft. Myers area. We have worked diligently to improve the contracts for the benefit of the Alico shareholders. The negotiation of these amendments demonstrates our commitment as a land management company" Mr. Alexander noted.
About Alico, Inc.
Alico, Inc., a land management company operating in Central and Southwest Florida, owns approximately 136,500 acres of land located in Collier, Glades, Hendry, Lee and Polk counties. Alico is involved in various operations and activities including citrus fruit production, harvesting and marketing, vegetable production, cattle ranching, sugarcane, sod production, rock mining, vegetable seedling greenhouse operations and forestry. Alico also leases land for farming, cattle grazing, recreation and oil exploration. Alico intends to grow its asset values and earnings through enhancements to its agricultural businesses and proactive management of its real estate holdings.
For Further Information Contact:
John R. Alexander
La Belle, Florida
(863) 675-2966
Statements in this press release that are not statements of historical or current fact constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the actual results of the Company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. These risks include the risk that assumptions about future actions upon which projected gain was calculated will not occur including the risk that the options for the Ginn West properties will not be exercised and the risk that a bankruptcy of a contracting party could impact the ability of the company to realize its expected gains or experience the benefits of its contracts. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company's reports and registration statements filed with the Securities and Exchange Commission. |
