Local Bounti has completed its sale-leaseback transaction for approximately $35 million. This transaction, combined with the previously announced additional financing of up to $110 million provides a total of up to $145 million to support Local Bounti's growth plans and immediate efforts to increase production to meet accelerating demand for the company's products.
Kathleen Valiasek, Local Bounti's Chief Financial Officer, said, "We are pleased to complete this non-dilutive transaction with an internally managed net-lease real estate investment trust. This cash, combined with proceeds available from our agreement with Cargill, provide us with over $58 million of capital to fund our operations. We are laser focused on executing our growth plan, further scaling up our operations and delivering locally grown fresh and delicious produce to consumers across the country."
The company has also entered into term sheets for up to approximately $90 million of debt funding from a licensed United States Department of Agriculture (USDA) lender. The company intends to utilize these funds, if received, to reduce its use of construction financing and lower its cost of capital. The company anticipates completing definitive documentation for an initial $35 million tranche with closing expected to occur in the second quarter of 2023, with the $55 million balance to be completed at a future date.
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