Weeks after the first bridge financing facility, the company announced on the 19th that they secured a USD 30 million credit facility.
Kalera AS (Euronext Growth Oslo: KAL, Bloomberg: KSLLF), one of the preeminent leafy green vertical farming companies and a leader in plant science for producing high-quality produce in controlled environments, today announced that it has secured a ten-year, $30 million Senior Secured Credit Facility with Farm Credit of Central Florida (”FCCF” or “Farm Credit”) to support capital expenditures and working capital needs of the Company across the entire United States. The credit facility was entered into by Kalera Inc. a United States-based wholly owned subsidiary of Kalera AS.
Credit Secured Weeks After Another Bridge Financing
Kalera AS (“Kalera” or the “Company”) (Euronext Growth Oslo: KAL, Bloomberg: KSLLF), one of the preeminent leafy green vertical farming companies and a leader in plant science for producing high-quality produce in controlled environments, today announced it entered a secured convertible bridge financing facility for up to $20 million.
The lenders will initially include Lightrock, the growth equity and impact investing platform affiliated with LGT, Canica AS, and NOX Management, which have collectively committed to lending the Company US$10 million under the facility. The facility, which matures one year from the drawdown date, will bear PIK interest at 8%, is secured by certain assets of Kalera and, subject to required corporate approvals, will be convertible by the lenders into shares at any time following the consummation of the announced merger with Agrico Acquisition Corp and the Nasdaq listing at a conversion price of US$10.00 / share in the merged entity.
The New Credit Terms
“With access to capital provided by Farm Credit, the Company has both strengthened its financial position and improved its capital structure, with $20 million in available funds for capital expenditures under a Term Loan, and $10 million to support general corporate and working capital purposes under a Revolving Loan. We consider Farm Credit to be an outstanding long-term financing partner for our US growth plans,” said Fernando Cornejo, Chief Financial Officer of Kalera. “We are now in an excellent position to execute on our objectives for the first half of 2022, whilst moving towards an expected June completion of our merger with Agrico that will deliver Kalera a US Nasdaq listing, immediate additional financing, and improved long-term funding opportunities”.
“With this financing, Kalera continues to advance the Controlled Environment Agriculture (CEA) industry toward a greater focus on enhancing local agriculture across the United States with a key focus on health and safety practices through its indoor agriculture technology,” said Brock Overbaugh, Vice President and Sr. Agribusiness Relationship Manager, Farm Credit of Central Florida/ACA.
The Credit Agreement has a term of 120 months and includes standard terms and conditions customary in secured financing transactions of this nature.