08:10 AM EST, 01/06/2025 (MT Newswires) -- Alico ( ALCO ) said Monday it is closing its Alico Citrus division to shift its focus to diversified land usage and real estate development.

The company said the unit will cease operations after the 2024/2025 harvest due to "environmental and financial challenges."

Alico ( ALCO ) also said it expects to see positive cash flow for the rest of the fiscal year, and that its cash reserves at the end of fiscal 2025 will be enough to cover operating expenses for at least two additional years without more land sales.

The company estimates that approximately 75% of its current land holdings are likely to remain focused on agriculture "for the foreseeable future." It added it expects approximately 25% of its land holdings have potential for commercial and residential development, and that its current landholdings are worth approximately $650 million to $750 million.

Shares of Alico ( ALCO ) were up 8% in recent Monday premarket activity.