Company receives $15
million in cash from Cargill as part of amended credit
facility
New facilities begin to ramp ̶
Washington seeded and Texas
expected to commence seeding by end of January 2024 ̶ provides capacity for
new product introductions to support long-term revenue
diversification and expansion
HAMILTON, Mont., Jan. 24,
2024 /PRNewswire/ -- Local Bounti Corporation (NYSE:
LOCL) ("Local Bounti" or the "Company"), a breakthrough U.S. indoor
agriculture company, today announced that it has secured additional
cash to fund working capital as part of its amended credit facility
with Cargill Financial Services International, Inc.
("Cargill").
Craig Hurlbert, Chief Executive Officer of Local Bounti
commented, "As we transition into 2024, our team is energized and
has its sights set on becoming the most efficient CEA produce
company in the industry. We have made incredible progress with the
development of our Stack & Flow Technology®, now on
full display at our Georgia
facility where it has enabled us to double run-rate production.
This integration has been instrumental in improving our crop
quality and turns at the facility resulting in a step change in
shipment volume.
"Stack & Flow is also the centerpiece of our upcoming
openings at new greenfield facilities in Washington and Texas by the end of January. With these
facilities in place, we will have a national network of growing
facilities that can efficiently serve our customers with added
capacity to meet customer demand for other leafy green varieties
and value-added SKUs. We have high expectations for these
facilities and our new product innovation initiatives and look
forward to demonstrating our focus on execution in the year
ahead."
The expansion of Local Bounti's cutting-edge facilities,
coupled with its proprietary Stack & Flow technology, has
helped exceed customer expectations. By harnessing innovation, the
Company has been able to expand distribution of its market-leading
Grab & Go Salad Kits and is set to expand its baby leaf
portfolio by introducing several high-velocity offerings including
Spinach, Arugula, 50/50 Blend and Power Greens by the end of
the third quarter of 2024. This commitment to delivering compelling
new products is designed to drive category growth for retail
partners and position Local Bounti at the forefront of delivering
fresh and exciting choices to consumers.
Kathleen Valiasek, Chief Financial Officer of Local Bounti,
added, "We are pleased with the ongoing support of our lender and
their flexibility in structuring a credit facility that allows us
to continue scaling the business in a fashion that will allow us to
achieve our goals. We continue to focus on operational efficiency
across our organization and have made important strides in
controlling costs. With an optimized organization, capital
resources, and a strong innovation pipeline in place, we believe
Local Bounti is poised for a breakout year in 2024."
Amended Credit Facility
Under the terms of its amended credit facility with Cargill,
Cargill has agreed to provide Local Bounti with $15 million of working capital, the aggregate
amount of which includes $5 million
more than the Company's previously stated expectation. The Company
continues to pursue opportunities to lower its cost of capital and
evaluate opportunities for construction financing to supplement or
replace existing debt.
About Local Bounti
Local Bounti is redefining indoor farming with an
innovative method – its Stack & Flow
Technology® – that significantly improves crop
turns, increases output and improves unit economics.
Local Bounti operates advanced indoor growing facilities
across the United States,
servicing approximately 13,000 retail doors with its two brands:
Local Bounti® and Pete's®. Local Bounti grows
healthy food utilizing a hybrid approach that integrates the best
attributes of controlled environment agriculture with natural
elements. Local Bounti's sustainable growing methods are better for
the planet, using 90% less land and 90% less water than
conventional farming methods. With a mission to 'bring our farm to
your kitchen in the fewest food miles possible,' Local Bounti's
food is fresher, more nutritious, and lasts longer than traditional
agriculture. To find out more, visit localbounti.com or
follow Local Bounti on LinkedIn for the latest news and
developments.
Forward-Looking Statements
This press release includes "forward-looking statements" within
the meaning of the "safe harbor" provisions of the United States
Private Securities Litigation Reform Act of 1995. In some cases,
you can identify these forward-looking statements by the use of
terms such as "expect," "will," "continue," "believe," expect,"
"estimate," "project," "intend," "should," "is to be," or similar
expressions, and variations or negatives of these words, but the
absence of these words does not mean that a statement is not
forward-looking. All statements other than statements of historical
fact are statements that could be deemed forward-looking
statements, including, but not limited to statements regarding
commencement of operations and seeding at the Texas and Washington facilities; lowering cost of
capital; evaluation of lower cost or replacement debt; and
sufficiency of capital. These statements are subject to known and
unknown risks, uncertainties and other factors that may cause our
actual results, levels of activity, performance or achievements to
differ materially from results expressed or implied in this press
release. The following factors, among others, could cause actual
results to differ materially from those described in these
forward-looking statements: the risk that Local Bounti will
fail to obtain additional necessary capital when needed on
acceptable terms, or at all; Local Bounti's ability to effectively
integrate the acquired operations of any CEA or similar operations
which it acquires into its existing operations; the ability of
Local Bounti to retain and hire key personnel; the Company's
ability to meet the continued listing requirements of the New York
Stock Exchange; the uncertainty of projected financial information;
if and when the Company will repurchase the stock authorized by its
Board of Directors and the impact of the share repurchase program
to the Company and its stockholders; Local Bounti's increased
leverage as a result of additional indebtedness incurred in
connection with the acquisition of Pete's or as the result of the
incurrence of additional future indebtedness; restrictions
contained in Local Bounti's debt facility agreements with Cargill;
Local Bounti's ability to repay, refinance, restructure and/or
extend its indebtedness as it comes due; Local Bounti's ability to
generate revenue; the risk that Local Bounti may never achieve or
sustain profitability; the risk that Local Bounti could fail to
effectively manage its future growth; Local Bounti's ability to
build out additional facilities; reliance on third parties for
construction, delays relating to material delivery and supply
chains, and fluctuating material prices; Local Bounti's ability to
decrease its cost of goods sold over time; potential for damage to
or problems with Local Bounti's CEA facilities; Local Bounti's
ability to attract and retain qualified employees, including
management; Local Bounti's ability to develop and maintain its
brand or brands it may acquire; Local Bounti's ability to maintain
its company culture or focus on its vision as it grows; Local
Bounti's ability to execute on its growth strategy; the risks of
diseases and pests destroying crops; Local Bounti's ability to
compete successfully in the highly competitive natural food market;
Local Bounti's ability to defend itself against intellectual
property infringement claims; changes in consumer preferences,
perception and spending habits in the food industry; seasonality;
Local Bounti's ability to achieve its sustainability goals; and
other risks and uncertainties indicated from time to time,
including those under "Risk Factors" and "Forward-Looking
Statements" in Local Bounti's Annual Report on Form 10-K for the
year ended December 31, 2022, filed
with the SEC on March 31, 2023, as
supplemented by other reports and documents Local Bounti files from
time to time with the SEC. Local Bounti cautions that the foregoing
list of factors is not exclusive and cautions readers not to place
undue reliance upon any forward-looking statements, which speak
only as of the date hereof. Local Bounti does not undertake or
accept any obligation or undertaking to update or revise any
forward-looking statements to reflect any change in its
expectations or any change in events, conditions, or circumstances
on which any such statement is based.
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SOURCE Local Bounti