Discover the latest news from Local Bounti Corporation, a leading indoor agriculture company in the US:
Local Bounti Corporation Announces Q2 2023 Financial Results and Reaffirms 2023 Guidance (2023/08/10)
Local Bounti Corporation (NYSE: LOCL, LOCL WS), a leading U.S. indoor agriculture company, has unveiled its financial results for Q2 2023, ending June 30. The company also reaffirmed its full-year 2023 guidance.
Anna Fabrega, CEO of Local Bounti, expressed her enthusiasm for the company’s future, highlighting the ongoing expansion of its growing capacity, consistent operational protocols, and distribution network. “Our collective efforts represent a massive opportunity to generate economic value for our employees and shareholders,” Fabrega said.
Q2 2023 Financial Highlights:
- Sales reached $7.2 million, marking an increase from $6.3 million in the same period last year.
- Gross profit stood at $0.9 million, with an adjusted gross margin of approximately 28%. This margin faced constraints due to weather-related challenges at the company’s California facilities.
- The company reported a net loss of $10.7 million, significantly improving from the $31.7 million net loss in the prior year. Adjusted EBITDA1 loss was $8.3 million.
Facility Expansion Updates:
- Byron, Georgia: Construction of Phase 1-C is nearing completion, with the facility expected to add around 40% of incremental revenue.
- Mount Pleasant, Texas: Installation of Stack zones will begin in Q3 2023, with operations expected to commence in Q4 2023.
- Pasco, Washington: The facility is set to bolster distribution in the Pacific Northwest, with operations commencing in early 2024.
Capital Structure: Local Bounti ended the quarter with cash and equivalents totaling $40.4 million. The company also secured a credit agreement with Cargill Financial Services International, Inc., providing approximately $66.6 million in availability. On June 15, 2023, a 1:13 reverse common stock split was executed, resulting in about 8.2 million shares outstanding as of June 30, 2023.
Furthermore, the company completed a sale-leaseback transaction on April 27, 2023, receiving around $35 million in net cash proceeds. This, combined with the credit agreement with Cargill, ensures the company has sufficient capital for its ongoing projects.
Financial Outlook: Local Bounti remains confident in its 2023 sales guidance, projecting sales between $34 to $40 million.
Local Bounti Stock Price: Its Stock price jumped 9.13% yesterday after the release of their financial results
Performs 1-for-13 Reverse Stock Split To Regain Compliance (2023/06/15)
On June 14, 2023, indoor farming company Local Bounti Corporation announced implementing a 1-for-13 reverse stock split. This decision, authorized by the firm’s Board and its shareholders, took effect on June 15, 2023. It involves reclassifying every 13 shares of common stock into a single share, which is expected to trade on a split-adjusted basis on the New York Stock Exchange (NYSE) under the unchanged symbol “LOCL.”
Stockholders who would receive fractional shares due to the reverse stock split will instead get a cash payment based on the closing sales price per share on the NYSE on June 14, 2023. While this financial move does not alter the authorized number of shares or the par value of the common stock, it will lead to adjustments in the exercise prices and the number of shares related to the Company’s equity awards and warrants.
Appoints Anna Fabrega As New CEO (2023/05/25)
Local Bounti Corporation (Local Bounti Stock: LOCL, LOCL WS) announced on May 25, 2023, that Anna Fabrega, former CEO of Freshly and Amazon executive, will assume the role of CEO effective June 5, 2023. Craig Hurlbert and Travis Joyner, current Co-CEOs and Co-Founders, will transition to their new positions as Senior Vice President of Strategy and Chief Technology Officer, respectively, and will continue their tenure on the Company’s Board of Directors.
Fabrega brings a wealth of experience to Local Bounti, with over 20 years in operations, consumer goods, and food production. Her impressive record of leading and scaling businesses is key to Local Bounti’s growth strategy. During her tenure at Freshly, Fabrega oversaw the introduction of new product lines to meet customer demand. In her nearly ten-year stint at Amazon, she spearheaded Amazon Go – the ‘Just Walk Out’ convenience stores, and Amazon Kitchen, Amazon’s new prepared foods operation, facilitating their expansion across the US. Fabrega’s experience extends to roles at Microsoft and Stripes Convenience Stores, and she serves on the board of APEI and the Woodruff Arts Center.
Hurlbert remarked, “With Anna as our new CEO, we are poised to expand our reach as we execute our growth strategy,” emphasizing the company’s commitment to addressing global food shortages via capital-efficient methods that optimize unit-level economics.
Joyner echoed this sentiment, noting, “Anna has a keen understanding of how to execute in this operation’s intensive and technologically complex environment, and we look forward to taking Local Bounti’s product offering to the next level.”
On her appointment, Fabrega expressed her belief in sustainable agriculture, saying, “Local Bounti represents the most innovative and promising approach to getting customers fresh, high-quality, flavorful food from our farms to store shelves… I see a huge opportunity for Local Bounti to expand its customer base and enhance penetration by offering more products in more locations – and do so in a way that’s better for the planet.”
Local Bounti Corporation Reports Its Q1 2023 Financial Results (2023/05/11)
The company reported a substantial increase in sales, reaching $6.7 million in the first quarter of 2023 compared to $0.3 million in the same period the previous year. The company’s gross profit for the quarter was $0.3 million, with an adjusted gross margin of approximately 33%, excluding certain costs. Local Bounti’s net loss decreased to $23.5 million from $25.8 million in the prior year. The company’s Co-CEO, Craig Hurlbert, expressed satisfaction with the results, citing the commissioning phase of their Georgia facility as a significant factor. The facility is expected to contribute to future growth, and the company is progressing with constructing additional facilities in Texas and Washington. Local Bounti ended the quarter with sufficient cash and credit capacity to drive the business and achieve breakeven adjusted EBITDA by the end of 2024 or early 2025, focusing on capital efficiency and utilizing innovative growing technologies.
Completes A $35M Sale-Leaseback With Cargill (2023/05/04)
Local Bounti Corporation has finalized a sale-leaseback transaction worth approximately $35 million with an internally managed net-lease real estate investment trust. This follows additional financing of up to $110 million through an amendment to credit facility agreements with Cargill Financial Services International, Inc. The total funding of up to $145 million will support Local Bounti’s growth plans and efforts to ramp up production to meet surging product demand. The transaction and financing provide non-dilutive capital, with the company’s Chief Financial Officer highlighting that it now has over $58 million in available funds. Local Bounti aims to execute its growth strategy, expand operations, and deliver locally grown, fresh produce to consumers nationwide. In addition, the company’s innovative Stack & Flow Technology™ and sustainable farming methods position it as a leader in indoor farming, focusing on reducing land and water usage. The completed transactions and additional funding will facilitate Local Bounti’s expansion, production increase, and ability to meet growing market needs while further reducing capital costs through USDA funding.
Q4 2022 & Full Year Financial Results (2023/03/30)
Local Bounti Corporation has announced its financial results for the three and twelve months ended December 31, 2022, revealing a net loss of $111.1 million for the year, compared to $56.1 million for the prior year period. Despite this, the company’s co-CEO, Craig Hurlbert, remains optimistic about the future, citing several vital milestones achieved in 2022, including significant advancements in the refinement and productivity of its Stack & Flow Technology™. Additionally, looking ahead to 2023, Hurlbert expects the completion of Local Bounti’s Georgia and Texas facilities and its Washington facility in 2024.
Local Bounti Secures A $145M Financing (2023/03/29)
Local Bounti has secured $145 million in new financing through an expanded credit agreement with Cargill Financial Services International and a sale-leaseback deal with a net-lease real estate investment trust. The funds will support the company’s growth plans and increase production to meet the growing demand for sustainable agricultural products. The CFO, Kathleen Valiasek, expressed satisfaction with the outcome, emphasizing the company’s focus on improving yields and expanding its distribution. The expanded credit facility with Cargill will provide up to $280 million in capital for facility construction in Georgia, Texas, and Washington. In exchange, Local Bounti issued warrants to Cargill to purchase common stock. The sale-leaseback agreement involves the sale of two California facilities for $35 million. These financing deals are a significant step forward for Local Bounti, enabling it to invest in growth and meet the increasing demand for locally grown and sustainable produce.
Local Bounti Receives A De-Listing Notice (2023/03/06)
Local Bounti Corporation has received a delisting notice from the New York Stock Exchange (NYSE) due to its common stock’s average closing price falling below $1.00 over a consecutive 30-trading-day period. However, the delisting notice does not immediately result in the delisting of Local Bounti’s stock from the NYSE. The company plans to notify the NYSE of its strategy to remedy the stock price deficiency and regain compliance. Despite this setback, Local Bounti remains committed to its position in the indoor agriculture industry, implementing strategies to overcome challenges and expressing optimism about future growth prospects. The company faces essential decisions regarding its financial results and the potential for a reverse stock split, which will significantly impact its future performance.
Developments In Its Pasco, Washington Greenhouse (2023/02/12)
Local Bounti, a Montana-based ag-tech startup, has applied for a $3.5 million permit to construct a large greenhouse in Pasco, Washington. The company recently acquired greenhouse producer Pete’s, which has increased its production capacity through two existing facilities and one under construction. Initially paused after the acquisition, the Pasco facility is optimized to ensure cost efficiency and synergy with Pete’s growing systems. In addition, the Tri-City area, where the greenhouse will be located, provides an ideal environment for agricultural innovation. Despite these positive developments, Local Bounti has experienced a significant decline in its stock performance, with a 78.90% drop over six months. This puts the company at risk of receiving a delisting notice if the stock price remains below $1.00 per share for 30 consecutive trading days, necessitating a focus on improving financial performance and regaining investor confidence.
New Product In Its Portfolio: Lettuce Wrap Kit (2023/01/12)
Local Bounti, an indoor agriculture company, has launched its chef-inspired Asian Style Chicken Lettuce Wrap Kit at 194 Sprouts Farmers Markets locations in California and Arizona. This product is aimed at meeting consumer demand for more premium, healthy, and easy-to-prepare meal kit options. The product is sustainably greenhouse-grown and includes a chef-inspired chicken and veggie blend in a tangy stir-fry sauce. This allows consumers to make restaurant-quality chicken lettuce wraps at home. The company has rolled out this product as its entry into the ‘Heat and Eat’ category and its second value-add product line offering in three months.
Mount Pleasant, Texas To See New Facility (2023/01/04)
The six-acre facility will use Local Bounti’s proprietary Stack & Flow Technology to grow and sell its line of packaged leafy greens. The facility is expected to commence operations in the fourth quarter of 2023 and fortify Local Bounti’s distribution in markets across Texas, Oklahoma, Louisiana, Mississippi, Arkansas, Kansas, and Missouri. The facility is also designed to provide additional capacity to meet existing demand from Local Bounti’s direct relationships with blue-chip retailers and regional distributors. Construction of the facility is expected to generate approximately 50 direct jobs in Mount Pleasant, Texas, with an additional 200 direct and indirect jobs expected once the facility is operational.
Q3 2022: Reaffirms Guidance, Continues Revenue Growth (2022/11/10)
In the third quarter of 2022, Local Bounti reported sales of $6.3 million, a significant increase from last year. While there was a slight decrease in revenue from the California facilities due to a delivery issue that has been resolved, revenue from the Montana facility saw a 13% increase, reflecting the company’s shift towards an optimal commercial production mix. Gross profit for the quarter was $1.3 million, with an adjusted gross margin of around 38%. However, there was a net loss of $27.1 million, with an adjusted EBITDA loss of $7.3 million when excluding certain expenses. These results show improvement compared to the prior period but highlight ongoing challenges and costs associated with the company’s business operations and growth strategy.
Local Bounti With Sam’s Club To Expand Produce Distribution (2022/11/07)
Local Bounti Corporation has entered into an offtake agreement with Sam’s Club to supply its leafy greens produced at the advanced greenhouse facility in Byron, Georgia. This agreement signifies a significant endorsement of Local Bounti’s commitment to delivering high-quality, locally-grown produce. The company will leverage its Stack & Flow Technology™ at the Georgia facility, combining vertical farming and greenhouse techniques to achieve higher yields and superior unit economics. This environmentally friendly approach reduces costs and the carbon footprint of production and distribution, making it over 30 times more productive per acre than traditional agriculture. In addition, local Bounti remains focused on sound capital allocation and expanding its operations while leveraging its existing national relationships.
Local Bounti Secure PIPE Financing From Fidelity & BNP Paribas (2022/10/24)
Local Bounti Corporation has announced an equity raise to support its ongoing expansion and development of Controlled Environment Agriculture (CEA) facilities. The company plans to leverage its proprietary Stack & Flow Technology™ to improve crop turns, increase output, and enhance unit economics. The equity investment, totaling $23.3 million, was arranged through a private investment in public equity (PIPE) offering, with participation from existing investors such as Fidelity Management & Research Company and BNP Paribas. The offering involves the sale of approximately 9.3 million shares of common stock for $2.50 per share. The securities sold in the offering have not been registered under the Securities Act of 1933 and are subject to certain restrictions on resale. Local Bounti intends to file a registration statement with the SEC to register the resale of the securities. The financing will enable the company to strategically expand its national footprint and meet the growing demand for locally grown produce.
Expands Product Portfolio With Grab-And-Go Salads (2022/10/11)
Local Bounti Corporation has announced an expansion of its product portfolio by introducing grab-and-go salads made with their sustainably and locally grown lettuces. The company aims to address consumer concerns about the quality and freshness of prepared salads in retail by utilizing its growing techniques to produce fresher and better-tasting salads. The salads, crafted with world-class chefs, feature a mix of Local Bounti’s locally grown greens and fresh and flavorful ingredients. Initially launching in the Northwest with two vegetarian-friendly options, the salads offer unique flavor profiles and aim to provide a convenient and better-for-you meal option without compromising taste or freshness. Local Bounti plans to expand its salad line and serve additional regions and retailers starting in early 2023. In addition, the salads will be showcased at the International Fresh Produce Association (IFPA) Global Produce and Floral Show in October.
Q2 Financial Results (2022/08/15)
In the second quarter of 2022, Local Bounti Corporation reported sales of $6.3 million, a significant increase compared to the prior year. Revenue from the company’s Hamilton, MT facility increased by 52% sequentially, reflecting the transition from research and development to commercial production. The California facilities also saw a 9% increase in revenue. Gross profit for the quarter was negative $12 thousand, impacted by temporary supply chain challenges that have since been resolved. The net loss for the quarter was $31.7 million, with an adjusted EBITDA loss of $7.9 million. These results reflect certain expenses such as stock-based compensation, interest expense, depreciation, amortization, business combination and integration costs, and restructuring costs. Despite the reported losses, the company expects to benefit from price increases and cost management strategies in the coming quarters.
Local Bounti Completes Its Georgia Facility (2022/07/14)
Local Bounti Corporation has announced the commencement of operations at its new controlled environment agriculture (CEA) facility in Byron, Georgia. The addition of the Georgia facility strengthens Local Bounti’s distribution network, allowing it to serve 19 retail distribution centers within a 400-mile radius directly. The facility will provide increased capacity to meet the demand from blue-chip retail customers and enhance service to the company’s approximately 10,000 retail locations across the United States and Canada. Local Bounti plans to deploy its innovative Stack & Flow Technology™ at all its facilities, including the Georgia facility, to achieve higher yields and superior unit economics. In addition, the company aims to expand the facility’s capacity and product offering, starting with greenhouse fresh packaged salad greens. The CEA industry’s use of hydroponic greenhouses offers significant advantages such as reduced water and land usage, precise control over growing conditions, and improved food safety. Local Bounti plans to celebrate the facility’s opening with a grand event on August 3, 2022, allowing the public to learn about the company’s lettuce-growing process and meet its executives and staff.
Closes a $200M Debt Financing Facility (2022/03/31)
Local Bounti Corporation announced the completion of a $200 million debt financing facility with Cargill Financial Services International, Inc. as part of a strategic investment. Cargill’s support demonstrates its belief in Local Bounti’s future as it invests as both a lender and an investor in the company’s proposed business combination with Leo Holdings III Corp (Local Bounti Stock: LOCL). Local Bounti focuses on advancing controlled environment agriculture and delivering local, fresh, and sustainably-grown leafy greens. The debt financing will cover the cost of planned greenhouse facilities. Cargill has also expressed interest in financing the construction of all of Local Bounti’s future indoor farming facilities through 2025. This partnership allows Local Bounti to accelerate the expansion of its innovative and sustainable greenhouses, utilizing its Stack & Flow Technology™ to produce high yields with low-cost operations. The company aims to revolutionize sustainable agriculture and contribute to the reduction of land and water usage, as well as the elimination of herbicides and pesticides. Completing the business combination will lead to Local Bounti being publicly traded on the New York Stock Exchange.
Local Bounti Acquires Pete’s For $125M (2022/03/15)
Local Bounti Corporation acquired Hollandia Produce Group, Inc., also known as Pete’s, for a total consideration of $122.5 million. The acquisition will be made through a combination of cash and shares of Local Bounti common stock. Pete’s is a California-based indoor farming company with two operating facilities in California and one under construction in Georgia. It has a strong presence in the CEA market within the Western U.S. and distribution to approximately 10,000 retail locations. Local Bounti plans to incorporate its Stack & Flow Technology into Pete’s facilities, allowing for higher yields and improved unit economics. The transaction is expected to enhance market access, create synergies, and drive growth for both companies.
Image provided by Local Bounti Corporation
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