Local Bounti, Disruptive AgTech Company Redefining the Future of Farming, Announces Closing of $200 Million Debt Financing Facility with Cargill to Accelerate Company's Expansion Plans
Capital to support Local Bounti's plans to serve a multi-billion-dollar market opportunity transforming the production and delivery of local, fresh and sustainably-grown leafy greens produce across the U.S.
Breakthrough U.S. indoor agriculture company Local Bounti Corporation ("Local Bounti"), today announced that is has closed a previously announced $200 million debt financing facility with Cargill Financial Services International, Inc. ("Cargill"), which is also a recent strategic investor in Local Bounti. Cargill is demonstrating significant support in the future of Local Bounti by investing as both a lender and an investor in the PIPE financing contemplated in connection with Local Bounti's proposed business combination (the "Business Combination") with Leo Holdings III Corp. (NYSE: LIII) ("Leo"), a publicly traded special purpose acquisition company. Local Bounti is an emerging leader in controlled environment agriculture advancing the production and delivery of local, fresh and sustainably-grown leafy greens produce for consumers across the U.S. with an initial focus on the Western U.S. In addition to closing on the debt financing facility to cover the cost of several planned greenhouse facilities, Cargill has also expressed interest in financing the construction of all of Local Bounti's planned future indoor farming facilities in the United States through 2025.
"Local Bounti and Cargill share a commitment to delivering farm to fork options for consumers while sustaining the land, not only for today but for generations of farmers to come," said Ross Jennings, head of Cargill's Trade and Capital Markets business. "As we look to advance sustainable agriculture practices, it was a natural and exciting fit to finance the construction of Local Bounti's innovative and sustainable greenhouses."
"In all four corners of our business, we strive to secure the best partners to help ensure our success. Cargill, as a global leader in the agricultural sector, is a great example of this," said Local Bounti Co-Founder and Co-CEO Craig Hurlbert. "Cargill's financial support will help us fast-track the build out of strategically located facilities that showcase our patent pending Stack & Flow Technology™ which produces superior unit economics with high yield and low-cost operations. As we pioneer a new chapter in sustainable agriculture, we are challenging the way food is produced and delivered. The consumer benefits by enjoying delicious, locally grown, longer-lasting fresh produce, and the planet benefits because we use 90% less land and water, AND no herbicides or pesticides. It's time to turn a new leaf!" said Hurlbert.
Leveraging its innovative proprietary modular and scalable building system, which is designed to easily and efficiently replicate its proven indoor farm model, Local Bounti is currently undergoing expansion to increase the capacity of its flagship facility in Hamilton, Montana, by approximately 140 percent. This expansion is expected to be completed and operational by the fourth quarter of 2021, and the company plans to break ground on additional facilities before the end of this year, with a total of seven additional facilities planned to be built in the Western U.S. by the end of 2025.
Local Bounti estimates that the total U.S. market for herbs and vegetables is anticipated to reach $30 billion by 2025, with less than 1% of that grown indoors today. To learn more about Local Bounti's unique growing process, diversified product offerings and experienced leadership team, please visit localbounti.com.
In June 2021, Local Bounti and Leo announced that they entered into a definitive business combination agreement. Upon the closing of the Business Combination, which remains subject to customary closing conditions, Local Bounti will become publicly traded on the New York Stock Exchange under the new ticker symbol, "LOCL".
About Local Bounti
Local Bounti is a premier controlled environment agriculture (CEA) company redefining conversion efficiency and environmental, social and governance (ESG) standards for indoor agriculture. Local Bounti operates an advanced indoor growing facility in Hamilton, Montana, within a few hours' drive of its retail and food service partners. Reaching retail shelves in record time post-harvest, Local Bounti produce is superior in taste and quality compared to traditional field-grown greens. Local Bounti's USDA Harmonized Good Agricultural Practices (GAP Plus+) and non-genetically modified organisms (GMO) produce is sustainably grown using proprietary technology 365 days a year, free of pesticides and herbicides, and using 90 percent less land and water than conventional outdoor farming methods. With a mission to 'bring our farm to your kitchen in the fewest food miles possible,' Local Bounti is disrupting the cultivation and delivery of produce. Local Bounti is also committed to making meaningful connections and giving back to each of the communities it serves. To find out more, visit localbounti.com or follow the company on LinkedIn for the latest news and developments.