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HomeNewsBusinessPIPE financing has been announced by Local Bounti to support its long-term...

PIPE financing has been announced by Local Bounti to support its long-term growth strategy

Local Bounti Corporation (NYSE: LOCL, LOCL WS), a ground-breaking American indoor agriculture business that combines the best elements of vertical and greenhouse growing technologies, today announced an equity raise to support the ongoing scale-up of its business and the expansion of its network of cutting-edge Controlled Environment Agriculture (“CEA”) facilities that use its unique Stack & Flow TechnologyTM to significantly improve crop productivity.

In order to raise $23.3 million (the “Offering”), the company organised a private investment in public equity (PIPE) investment in the company. Fidelity Management & Research Company and BNP Paribas contributed significantly to the Offering. In accordance with the terms of the Offering, Local Bounti has agreed to issue and sell a total of 9.3 million shares of the Company’s common stock in a private placement at a price per share of $2.50, which corresponds to the stock’s closing price on October 20, 2022.

With the backing of many of our notable long-term shareholders, including our management team, we are happy to make this equity investment, said Kathleen Valiasek, CFO of Local Bounti. “This financing allows us to continue carefully expanding our national footprint to satisfy substantial demand from our existing client base. We are highly focused on supplying high quality, delicious tasting food farmed locally and closer to the consumer.”

The Securities Act of 1933, as amended, does not apply to the securities sold or to be sold in the Offering because they are being made in a private transaction and have not been registered. As a result, they may not be offered or sold in the United States unless they are covered by an effective registration statement or a relevant exemption from the registration requirements. Local Bounti and the investors in the offering entered into a registration rights agreement concurrently with the execution of the securities purchase agreement, and as a result, the company has agreed to file a registration statement with the SEC registering the resale of the securities sold in the offering.

News Summary:

  • PIPE financing has been announced by Local Bounti to support its long-term growth strategy
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