Local Bounti secured $27.5 million in new funding, comprising $25 million from new equity proceeds and $2.5 million in capital expenditure financing. The company completed a significant restructuring of its existing credit facility, extinguishing approximately $197 million in debt, representing nearly a 40% reduction.
The amended senior debt facility now totals $312 million with a lower interest rate of three-month SOFR plus 200 basis points for the first six years. No cash interest or principal payments are required until April 2027, and the maturity date has been extended to 2035.
Kathleen Valiasek has been appointed as the new Chief Executive Officer, adding to her existing role as President and Chief Financial Officer. Former CEO Craig Hurlbert transitioned to the role of Executive Chairman, and two new directors were named to the Board.
Local Bounti expanded its relationship with Walmart, now serving 191 stores with premium baby leaf varieties and securing an additional commitment to serve 13 Walmart distribution centers with Conventional Living Butter Lettuce, with shipments starting in Q2 2025. The company also expanded its Texas-grown Arugula offering with Brookshire's in approximately 80 stores and began distributing Organic Living Butter Lettuce to HEB.
The Texas facility is undergoing a reconfiguration of three acres to produce both head lettuce and cut products, with commercial production in this section expected to begin in Q2 2025. Automated harvesting equipment for the Texas facility is slated for installation in early Q3 2025, aiming to enhance operational efficiencies and margin improvement.
Local Bounti anticipates first quarter 2025 sales of approximately $11.5 million. The company now expects to achieve positive adjusted EBITDA in the third quarter of 2025, a revision from its previous Q2 2025 target.
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