Local Bounti, per a press release, announced a 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."
According to the announcement, the new financing is a $23.3 million private investment in public equity (PIPE) investment coming from existing investors, including Fidelity Management & Research Company and BNP Paribas. In the agreement, 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 deal 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.