5-year offtake agreement for Local Bounti's
leafy greens production
HAMILTON, Mont., Nov. 7, 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 offtake
agreement (the "Agreement") with Sam's Club for its leafy greens
production starting at its advanced greenhouse facility in
Byron, Georgia.
"This exciting commercial development represents a powerful
endorsement of our dedicated team that works tirelessly to deliver
the highest quality locally grown produce to our customers," stated
Brian Cook, President of Local
Bounti.
"We will continue to pursue sound capital allocation with a keen
eye on capital efficiency as we further expand our
operations. Today's announcement demonstrates the advantages
of our existing national relationships and how that knowledge
informs the advancement of our facility network."
Local Bounti will implement its Stack & Flow Technology™ at
the new facility in Georgia,
further enhancing capacity to meet existing demand. Stack &
Flow Technology, Local Bounti's proprietary method of indoor
farming, combines the best aspects of vertical farming and
greenhouse growing technologies to deliver higher yields of diverse
leafy greens at superior unit economics. Through this
process, Local Bounti can grow produce in an environmentally
friendly manner that increases harvest efficiency and reduces the
cost and carbon footprint of the production and distribution
process. The technology is over 30 times more productive per acre
than traditional agriculture.
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 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 the Company'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 the Company. The
forward-looking statements in this press release address a variety
of subjects including, for example, location of future facilities,
the expected offtake amounts from the Georgia facility, the implementation of Stack
& Flow Technology™ at the Georgia facility and pursuing sound capital
allocation. The following factors, among others, could cause actual
results to differ materially from those described in these
forward-looking statements: Local Bounti's ability to effectively
integrate the recently acquired operations of Pete's into its
existing operations; 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; 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
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; Local Bounti's
ability to fulfill its obligations under offtake or other customer
agreements and the impact of these types of agreements on
operations; 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 and 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 such statement is
based.
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SOURCE Local Bounti