Seeka Updates Northland Orchard Sales and Completes Booster

Seeka Limited [NZX:SEK] provides a progress update on its Northland Strategy and earnings guidance. In 2018 Seeka acquired a portfolio of Northland orchards through the purchase of Turners and Growers Horticulture Limited's KeriKeri based post-harvest and orchard business. In line with Seeka's Northland strategy Seeka embarked on a process of rejuvenating those orchards and selling them, with a long term fruit packing commitment to Seeka. Seeka is recording the sales once the sale conditions have been met. Most conditions relate to title and subdivision. Sales progress is as below. During the year ended 31 December 2018, Seeka sold and had settled $7.0m of its Northland orchard portfolio releasing a $0.6m gain on sale. Since 1 January 2019 Seeka has sold $39.2m of its Northland orchards as follows: o In the six months ended 30 June 2019, Seeka sold and had settled $5.4m of its Northland orchard portfolio releasing a $1.2m gain on sale. o Since 30 June 2019, Seeka has sold and settled $28.75m of its Northland orchard portfolio releasing a $1.79m gain on sale, including the $15.5m sale to Booster's PLPP now settled. Please note in the case of the PLPP sale, this property is leased back to Seeka and the accounting treatment is subject to IFRS16. o $5.05m in conditional sales have been agreed that are expected to be settled before 31 December 2019. These sales will result in a gain on sale of $1.5m when completed. Seeka still holds $9.54m in orchards for sale, and is actively engaged in sale negotiations. Seeka will update the market on sales progress as they occur. Consistent with the strategy, proceeds from sale will be used to repay debt. Ends. For further information, please contact: Michael Franks Seeka Chief Executive 021356516 Stuart McKinstry Seeka Chief Financial Officer 0212215583 End CA:00341924 For:SEK Type:GENERAL Time:2019-10-01 09:32:00