
The Local Bounti Corporation , 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 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.
"We are very pleased with the
outcome of these transactions and the support they provide for Local Bounti's
growth ambitions,” Kathleen Valiasek, CFO
of Local Bounti, said per the announcement. “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.
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