Amended agreement with Cargill provides additional $110 million to fund construction at Georgia, Texas and Washington facilities
Signs sale-leaseback transaction for
$35 million
HAMILTON, Mont., March 29,
2023 /PRNewswire/ -- Local Bounti Corporation (NYSE:
LOCL, LOCL WS) ("Local Bounti" or the "Company"), a breakthrough
U.S. indoor agriculture company combining the best aspects of
vertical and greenhouse growing technologies, today announced that
it secured a total of up to $145
million of new financing across two sources – the first
through an amendment to its credit facility agreements with Cargill
Financial Services International, Inc. ("Cargill"); and the second, a sale-leaseback
deal with an internally managed net-lease real estate investment
trust. The combined financing supports Local Bounti's growth plans
and immediate efforts to increase production to meet accelerating
demand for the Company's products.
Kathleen Valiasek, CFO of Local
Bounti commented, "We are very pleased with the outcome of these
transactions and the support they provide for Local Bounti's growth
ambitions. We remain laser focused on identifying
opportunities where we can utilize our flexible Stack & Flow
Technology™ to deliver improved yields to meet the robust
demand for locally grown and sustainable produce that we are seeing
across our industry-leading distribution footprint."
On March 28, 2023, Local Bounti
entered into an amendment to its existing credit agreements with
Cargill to expand the facility
from $170 million to up to
$280 million per the terms and
conditions of the agreement, including capital to fund construction
at the Company's facilities in Georgia, Texas and Washington, subject to certain conditions. In
consideration for the improved flexibility and the expanded size of
the facility, Local Bounti issued Cargill 5-year warrants to purchase up to 69.6
million shares of common stock with a per share exercise price of
$1 per share, representing more than
a 100% premium to Local Bounti's current stock price.
Local Bounti also entered into an agreement with an internally
managed net-lease real estate investment trust for the
sale-leaseback of its two facilities located in Carpinteria and Oxnard, California for approximately
$35 million. The closing of the
sale-leaseback transaction is subject to customary closing
conditions and is expected in the second quarter of 2023.
About Local Bounti
Local Bounti is redefining indoor farming with an innovative
method – its proprietary 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 over 10,000 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 the
Company's ability to access additional capital when needed and on
terms acceptable to the Company, and entering into potential
sale-leaseback transactions. 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 Pete's into its existing operations; the
ability of Local Bounti to retain and hire key personnel; the
uncertainty of projected financial information; Local Bounti's
increased leverage as a result of additional indebtedness incurred
in connection with the recent 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; and unknown liabilities that may be
assumed in the transaction; 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; 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, 2021, filed with the
SEC on March 30, 2022, as supplemented by subsequent Quarterly
Reports on Form 10-Q and Annual Reports on Form 10-K, and 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