Local Bounti

Based in Hamilton, Montana, Local Bounti is a controlled environment agriculture (CEA) company, producing lettuce, herbs, and loose leaf. Local Bounti utilizes patent-pending Stack & Flow Technology, a vertical and hydroponic greenhouse farming hybrid. The company claims its products are environmentally friendly, using 90% less water and zero pesticides. 

The company's first CEA facility in Hamilton, Montana reached full commercial operation by the second half of 2020. Local Bounti added seven more greenhouses to the Montana Facility in 2021, bringing the total number of producing greenhouses to 12. With the additional capacity, the farm is growing commercial produce in roughly half of the facility, with the remainder dedicated to R&D, which includes new products, technology, and system designs.  In May 2023, the company expanded its Grab and Go Salad Kit line to include premium, antibiotic-free white meat chicken in two new recipes: Artisanal Chicken Caesar and Memphis Style BBQ Chicken Salad Kits.

Local Bounti announced a merger with SPAC Leo Holdings in June 2021 to go public on the NYSE. Local Bounti received USD 400 million in gross proceeds from the transaction, which valued the combined company at USD 1.1 billion. The proceeds were to be used to expand the company's footprint across the western US. In March 2022, the company signed a definitive agreement to acquire vertical farming business Hollandia Produce Group, which operates as Pete's, based in California, for a consideration of USD 122.5 million. Local Bounti intends to install its patent-pending Stack & Flow Technology at Pete's facilities and gain access to Pete's existing retail customer base of over 10,000 retail locations across the country. 

In January 2023 , Local Bounti announced plans to construct and operate a new six-acre indoor facility in Mount Pleasant, Texas. The new facility is expected to strengthen Local Bounti's distribution in Texas, Oklahoma, Louisiana, Mississippi, Arkansas, Kansas, and Missouri and provide additional capacity to meet existing demand from Local Bounti's direct relationships with regional blue-chip retailers and distributors. 

Funding and financials

In FY 2022, the company reported revenue of USD 19.5 million, 32x the revenue in the prior year period. The adjusted EBITDA loss for FY 2022 was USD 29.8 million, up 67% YoY. For FY 2023, the company provided revenue guidance of USD 34 million–40 million.

Local Bounti secured USD 145 million in March 2023 from extended credit facility agreements with Cargill Financial Services International, and a sale-leaseback deal with an internally managed net-lease real estate investment trust. The funds will be used to support the company's growth plans, increase production, and finance the construction of its facilities in Georgia, Texas, and Washington.