Agriculture technology continues to be a hot segment for companies seeking to go public with another SPAC deal in the sector announced Friday morning.
The SPAC Deal: Local Bounti announced a SPAC deal with Leo Holdings III Corp LIII valuing the company at $1.1 billion.
One of the company’s key investors is Cargill which is listed as a strategic partner and will invest in the company as part of the SPAC deal. Cargill will also provide a $200 million debt facility to help with Local Bounti’s expansion plans. Public LIII shareholders will own 24.8% of Local Bounti if the merger is approved. Shares will trade on the NYSE as LOCL.
Local Bounti is seeking to improve the production of fresh produce across the United States. The company uses proprietary technology to grow leafy greens and herbs in an indoor environment. Current products include cut lettuce, living lettuce, and living herbs such as basil and cilantro. Local Bounti products are currently in more than 400 retail stores, according to the company.
Growth Ahead: Local Bounti will use capital from the SPAC deal to build out its indoor farming facilities across the Western U.S. It plans to double the size of its flagship Hamilton, Montana facility and to break ground on additional facilities by the end of 2021. The company’s pipeline includes eight facilities and a plan for 30 SKUs by the end of 2025.
“Today’s announcement takes Local Bounti to the next level in enabling local, sustainable production and delivery of fresh, delicious and nutritious produce, including in regions that traditionally don’t have access to local supply, starting in the Western U.S. and expanding globally,” Local Bounti co-founder and co-CEO Craig Hurlbert said.
Other long-term growth plans for Local Bounti include international expansion, subscription as a service, new products, and franchising and licensing.
Read the complete article at www.benzinga.com.