Oct 18 2004
Landec Corporation, a developer and marketer of technology-based polymer products for food, agricultural and licensed partner applications announced today that it has completed the sale of 486,111 shares of Landec Common Stock to Chiquita Brands International, Inc.
On September 3, 2004, Landec and Chiquita entered into a joint technology development and supply agreement in which Landec will provide its patented Intelimer(R) packaging technology for Chiquita bananas. In addition, the companies entered into a Stock Purchase Agreement whereby Landec would sell up to 500,000 shares of Landec Common Stock to Chiquita. The actual number and purchase price of the shares sold were determined by an agreed formula based on the weighted average daily closing price of Landec's stock over the 20 trading days beginning September 9, 2004. As a result, on October 14, 2004, Chiquita purchased 486,111 shares at $7.20 per share for a total of $3.5 million.
"We are very excited about having Chiquita as a Landec shareholder and working together to develop products that use our proprietary specialty packaging with Chiquita bananas," stated Gary Steele, President and CEO of Landec. "Having Chiquita as a shareholder further solidifies our relationship and gives them a vested interest in the future success of all aspects of our business."
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