U.S. indoor agriculture company Local Bounti has agreed to go public through a merger with Leo Holdings III. The transaction values the combined company at an equity value of $1.1 billion (assuming no redemptions) and upon closing of the transaction, the new company is expected to list on the NYSE under LOCL.
Local Bounti will receive up to $400 million in gross proceeds (assuming no redemptions), including $125 million from a fully committed PIPE anchored by existing investors and new investors, including Fidelity Management & Research Company LLC, BNP Paribas Asset Management Ecosystem Restoration Fund and Cargill.
Strategic partners include Cargill and Sarath Ratanavadi, CEO of Gulf Energy Development − Thailand’s largest private energy and infrastructure company and one of the world’s leaders in sustainable energy − which are investing in the combined company through the PIPE. Cargill is also expected to provide $200 million in debt financing to accelerate Local Bounti’s expansion plans. Read more.
