Maui Land & Pineapple: Kapalua Resort Update
Maui Land & Pineapple (NYSE: MLP) announced that it has successfully retired all of its $40,000,000 of senior secured convertible notes utilizing proceeds from the just completed $40 million shareholder rights offering. Remaining capital from the rights offering will be used as working capital for resort and real estate development operations.
Also reported today: AOL co-founder, Steve Case, purchased MLP shares under the rights offering last week and a separate transaction today, thereby increasing his ownership of the company to 62.8%.
According to their second quarter filings, Maui Land & Pineapple reported operating losses of $4.6 million and consolidated revenues of $8.3 million. This is compared with losses of $54.2 million and revenue of $8.7 million in the same period in 2009. Amongst MLP's holdings is the approximately 21,800 acre Kapalua Resort. The company underwent significant changes in 2009: Agricultural operations ceased, the Plantation Course was sold for $50 million, and MLP leased out both the Kapalua Adventures and Kapalua Villas to third party operators. The decrease resulting from no longer operating the Villas and Adventures was reportedly offset by improvements in golf and spa operations, an increased visitor count in 2010, and general cost reduction measures. You can read more online www.mauiland.com, Investor Relations.