Local Bounti, a Montana-based controlled environment agriculture (CEA) company that uses a hybrid of vertical farming and hydroponic greenhouse farming techniques, has secured USD 145 million financing from credit facility agreements with Cargill Financial Services International, and a sale-leaseback deal with an internally managed net-lease real estate investment trust.

Local Bounti has expanded Cargill’s credit facility from USD 170 million to up to USD 280 million, issuing five-year warrants to Cargill to purchase up to 69.6 million shares of common stock at a per-share exercise price of USD 1 and fund the company's construction in Georgia, Texas, and Washington. The company has also agreed to sell its facilities in Carpinteria and Oxnard, California, to a net-lease real estate investment trust for nearly USD 35 million, subject to customary closing conditions, with the sale expected to close in Q2 2023.

The combined financing would support Local Bounti's growth plans, and increase production to meet growing demand for its products.

Analyst QuickTake: The increase in finance comes alongside Local Bounti’s plan to expand its presence. The company unveiled plans in January 2023 to construct new six-acre indoor facilities in Mount Pleasant, Texas, to strengthen its distribution in Texas, Oklahoma, Louisiana, Mississippi, Arkansas, Kansas, and Missouri while expanding capacity to meet existing demand from its regional blue-chip retailers and distributors.