Entered into Agreement for $23.3 million PIPE with Fidelity Management &
Research Company, BNP Paribas and other existing investors
including management
HAMILTON, Mont., Oct. 24,
2022 /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 an
equity raise to support the continued scale-up of its organization
and build-out of its network of innovative Controlled Environment
Agriculture ("CEA") facilities that leverage its proprietary Stack
& Flow Technology™ to significantly improve
crop turns, increase output and improve unit economics.
"We are pleased to enter into this equity investment with the
support of many of our marquee long-term shareholders, including
our management team," commented Kathleen
Valiasek, CFO of Local Bounti. "We are very focused on
delivering high quality, great tasting produce grown locally and
closer to the consumer and this financing allows us to continue to
strategically expand our national footprint to meet robust demand
from our existing customer base."
The Company arranged a $23.3
million private investment in public equity (PIPE)
investment (the "Offering") in the Company with significant
investment coming from existing investors, including Fidelity
Management & Research Company and BNP Paribas. Under the terms
of the Offering, Local Bounti has agreed to issue and sell in a
private placement an aggregate of approximately 9.3 million shares
of the Company's common stock at a price per share of $2.50, the closing price of the Company's common
stock on October 20, 2022.
The securities sold, or to be sold, in the Offering are being
made in a transaction not involving a public offering and have not
been registered under the Securities Act of 1933, as amended, and
may not be offered or sold in the United
States except pursuant to an effective registration
statement or an applicable exemption from the registration
requirements. Concurrently with the execution of the securities
purchase agreement, Local Bounti and the investors in the Offering
entered into a registration rights agreement pursuant to which the
Company has agreed to file a registration statement with the SEC
registering the resale of the securities sold in the Offering.
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 approximately
10,000 retail doors with its two brands: Local Bounti®
and Pete's®. We grow healthy food utilizing a hybrid
approach that integrates the best attributes of controlled
environment agriculture with natural elements. Our sustainable
growing methods are better for the planet, using 90% less water and
land 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 eatpetes.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 Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and 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 words such as
"anticipate," "approximate," "believe," "commit," "continue,"
"could," "estimate," "expect," "hope," "intend," "may," "outlook,"
"plan," "project," "potential," "should," "would," "will," and
other similar words or expressions. Forward-looking statements
reflect Local Bounti's current expectations or beliefs concerning
future events and actual events may differ materially from
historical results or current expectations. The reader is cautioned
not to place undue reliance on these forward-looking statements,
which are not a guarantee of future performance and are subject to
a number of uncertainties, risks, assumptions, and other factors,
many of which are outside the control of Local Bounti. The
forward-looking statements in this press release relate to the
Offering. The following factors, among others, could cause actual
results to differ materially from those described in these
forward-looking statements: Local Bounti's inability to complete
the Offering; Local Bounti's ability to effectively integrate the
recently 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; restrictions contained in Local Bounti's debt facility
agreements with Cargill Financial Services International, Inc.;
Local Bounti's ability to repay, refinance, restructure, or extend
its indebtedness as it comes due; unknown liabilities that may be
assumed in acquisitions; 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; 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 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 maintain its gross
margin or decrease its cost of goods sold over time; potential for
damage to or problems with Local Bounti's 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 forward-looking statement
is based.
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SOURCE Local Bounti