Agribusiness and real estate development company Limoneira Co LMNR shares are surging after the Board of Directors commenced a process to explore potential strategic alternatives aimed at maximizing value for stockholders.
The alternatives include, but are not limited to, a sale of all or parts of the company, merger, and other potential strategic transactions.
The Board has retained Stephens Inc as its financial advisor and Squire Patton Boggs (US) LLP as its legal advisor to assist with the process.
"Today, we consider ourselves to be in a strong financial position, having recently reduced our net debt position and rightsized the balance sheet through our ongoing strategic shift towards an asset-lighter business model,” said Chairperson of the Board Scott S. Slater.
The Board has not set a timetable for the process and gave no assurance that it will result in any transaction or other outcome.
In September, the company reported third-quarter total net revenue of $52.5 million, down from $58.9 million the previous year.
Agribusiness revenue for the third quarter included $24.2 million in fresh lemon sales and $3.5 million in avocado revenue, both sharply down from $27.8 million and $12.6 million in sales last year, respectively.
In the quarterly report, the company noted its food service business and industry logistics continue to experience slowdown due to supply chain and inflationary pressures on a global basis.
Price Action: LMNR shares are trading higher by 18.52% at $18.02 on the last check Friday.
Photo Via Company
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
