Landec Corporation Announces Sale of Curation Foods’ BreatheWay® Business for $3.2 Million in Cash
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Divestment of BreatheWay represents another step towards building a CDMO-focused company aligned with growth categories and attractive end markets
SANTA MARIA, Calif., June 02, 2022 (GLOBE NEWSWIRE) — Landec Corporation (Nasdaq: LNDC) (“Landec” or the “Company”), a growth-focused diversified health and wellness company Lifecore Biomedical (“ Lifecore”) – a fully integrated contract development and manufacturing organization (“CDMO”) that offers highly differentiated capabilities in the development, filling and finishing of complex sterile injectable pharmaceutical products in syringes and vials – announced today completed the sale of all of its Curation Foods assets related to packaging technology business BreatheWay (the “BreatheWay Business”) for $3.2 million in cash.
Dr. Albert Bolles, Chairman and CEO of Landec Corporation, said, “We are pleased to announce the sale of BreatheWay Business, which is another step towards building a CDMO-focused, category-aligned company. growth and attractive end markets. This transaction demonstrates our team’s continued focus on simplifying Landec’s business through the SWIFT project as a means of generating shareholder value.
The BreatheWay business naturally extends the shelf life of packaged fruits and vegetables, to ensure that fresh, high-quality produce reaches the consumer. The BreatheWay business represented revenue of $2.1 million during the twelve-month period ended February 27, 2022. Following the sale, the Company’s Curation Foods segment is represented by its Curation Foods products. avocado and its olive oil and vinegar businesses (Yucatan Foods, O Olive Oil & Vinegar®).
The net proceeds of the transaction will be used to repay borrowings under the Company’s credit facility. Operating results related to the BreatheWay business will be reported as discontinued operations beginning in the first quarter of fiscal 2023.
About Landec Corporation
Landec Corporation (Nasdaq: LNDC) is a leading diversified health and wellness solutions innovator with two operating businesses: Lifecore Biomedical, Inc. and Curation Foods, Inc. Lifecore Biomedical is a fully integrated Development and Contract Manufacturing (CDMO) which offers highly differentiated capabilities in the development, filling and finishing of complex sterile injectable pharmaceutical products in syringes and vials. As a leading manufacturer of premium, injectable-grade hyaluronic acid, Lifecore brings 35 years of expertise as a partner to global and emerging biopharmaceutical and biotechnology companies across multiple therapeutic categories to bring their innovations to market. Curation Foods is focused on innovating and delivering plant-based foods with 100% clean ingredients to retail, club and foodservice channels. Curation Foods brands include Yucatan® and Cabo Fresh® avocado products and O Olive Oil & Vinegar® premium artisan products. For more information about the company, visit Landec’s website at www.landec.com.
Important Cautions Regarding Forward-Looking Statements
This press release contains forward-looking statements regarding future events and our future results that are subject to the safe harbor created under the Private Securities Litigation Reform Act of 1995 and other safe harbors under the Securities Act of 1933 and the Securities Exchange Act of 1934. Words such as “anticipate”, “estimate”, “expect”, “project”, “plan”, “intend”, “believe”, “may”, “could”, “will”, “should”, “may have”, “probable” and similar expressions are used to identify forward-looking statements. All forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially, including factors such as timing and expenses associated with operations, the Company’s ability to recognize anticipated benefits from the sale of BreatheWay the business, future liabilities that may arise from the transaction with Hazel Technologies, including indemnification or retained assets, the ability to successfully operate the remaining operations of Curation Foods, litigation that may arise from the transaction with Taylor Farms, the ability to obtain acceptance of the Company’s new products in the marketplace, weather conditions that may affect product supply and pricing, government regulations affecting our business, timing of regulatory approvals, related uncertainties to COVID-19 and the impact of our responses to that this, the ability to successfully integrate Yucatan Foods into the Curation Foods business, and the m ix between domestic and international sales. For additional information about factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to our filings with the Securities and Exchange Commission, including the risk factors contained in our most recent report. Quarterly on Form 10-Q and Annual Report on Form 10-K. Forward-looking statements represent management’s current expectations and are inherently uncertain. Except as required by law, we undertake no obligation to update any forward-looking statements we have made to reflect subsequent events or circumstances.
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