HAMILTON, Mont., Jan. 24, 2024 /PRNewswire/ — Local Bounti Corporation BB #:368695, 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.
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.
