Board of Directors Re-Appoints Co-Founder
Craig Hurlbert as Chief Executive
Officer
Georgia Facility Doubled Run-rate Production
in December
Provides Update to Full Year 2023 Sales
Expectation
HAMILTON, Mont., Dec. 15,
2023 /PRNewswire/ -- Local Bounti Corporation
(NYSE: LOCL) ("Local Bounti" or the "Company"), a breakthrough U.S.
indoor agriculture company, today announced a leadership transition
and a business update.
Craig Hurlbert, the Company's
Co-Founder and Chairman of the Board, is reprising the role of
Chief Executive Officer, effective immediately. Mr. Hurlbert
previously served as Local Bounti's co-CEO from November 2021 to June
2023 and as Senior Vice President of Strategy from
June 2023 to December 2023. Mr.
Hurlbert succeeds Anna Fabrega, who
is leaving the Company as part of a broader restructuring to
optimize the Company's organizational structure. The Company
expects to save approximately $3.2
million on an annualized basis as a result of these
actions.
Craig Hurlbert, CEO of Local
Bounti, stated, "We have an amazing team at Local Bounti that I
believe possesses the unique capabilities to cement our place as a
leader in our industry. As we continue to scale this
business, we are working diligently to achieve breakeven
cashflow. Our primary objective is to drive greater
efficiency at every level of the business through optimization of
our cost structure and further flattening of our organization to
enable faster decision making and enhance strategic
initiatives. I believe our mandate is simple – to foster an
environment of excellence and ensure that we have the right people
in the right places to maximize value for both our customers and
shareholders. I'm pleased to say that we are definitely on
the right track, and I look forward to leading our team to new
heights. I would like to thank Anna for her contribution to
our success over the past six months."
2023 has been a pivotal year for Local Bounti, complete with
expanded production capacity brought about by the final integration
of the Company's Stack & Flow Technology™ at its Georgia facility in October 2023. As a result of the additional
capacity, the Company has doubled its run-rate production out of
the Georgia facility in December
in support of its off-take agreement with a large club customer.
Construction of the Company's Washington facility remains on track with
seeding expected to commence in early January. Although its
Texas facility is also nearly
complete, unexpected delivery delays on select equipment has pushed
seeding back and operations are now expected to commence in late
January following the start-up of the Washington facility.
As a result of the phasing of shipments in the fourth quarter,
the Company now expects full year 2023 sales to be approximately
$28 million, implying growth of
approximately 44% compared to full year 2022.
Craig Hurlbert Biography
Craig Hurlbert co-founded Local
Bounti's predecessor company in August
2018. Mr. Hurlbert served as Chairman of the Board of
Directors from November 2021 to
June 2023 and since October 2023, co-Chief Executive Officer from
November 2021 to June 2023, and Senior Vice President of Strategy
since June 2023.
Prior to leading Local Bounti, Mr. Hurlbert co-founded
BrightMark Partners, LLC, a growth equity and management firm
providing capital and resources to venture, growth phase and
middle-market businesses, and served as a Managing Partner from
January 2014 to March 2021. Previously, Mr. Hurlbert held various
leadership roles at TAS Energy, a leading provider of high
efficiency and modular cooling and energy systems for the data
center, commercial, industrial, and power generation markets,
including President, Chief Executive Officer, and Chairman of the
Board. Mr. Hurlbert also held leadership roles at General Electric
Company and North American Energy Services.
About Local Bounti
Local Bounti is redefining indoor farming with an innovative
method – its Stack & Flow Technology™ – that
significantly improves crop turns, increases output and improves
unit economics. Local Bounti operates advanced indoor growing
facilities across the United
States, servicing approximately 13,000 retail doors with its
two brands: Local Bounti® and Pete's®. Local Bounti grows healthy
food utilizing a hybrid approach that integrates the best
attributes of controlled environment agriculture with natural
elements. Local Bounti's sustainable growing methods are better for
the planet, using 90% less land and 90% less water than
conventional farming methods. With a mission to 'bring our farm to
your kitchen in the fewest food miles possible,' Local Bounti's
food is fresher, more nutritious, and lasts longer than traditional
agriculture. To find out more, visit localbounti.com or
follow Local Bounti on LinkedIn for the latest news and
developments.
Forward-Looking Statements
This press release includes "forward-looking statements" within
the meaning of the "safe harbor" provisions of the United States
Private Securities Litigation Reform Act of 1995. In some cases,
you can identify these forward-looking statements by the use of
terms such as "expect," "will," "continue," "believe," expect,"
"estimate," "project," "intend," "should," "is to be," or similar
expressions, and variations or negatives of these words, but the
absence of these words does not mean that a statement is not
forward-looking. All statements other than statements of historical
fact are statements that could be deemed forward-looking
statements, including, but not limited to: statements regarding
anticipated timing toward achieving breakeven cashflow, cost
benefits associated with changes to the Company's leadership,
projections of market opportunity and market share, commencement of
operations at the Texas and
Washington facilities, and 2023
sales results. These statements are subject to known and unknown
risks, uncertainties and other factors that may cause our actual
results, levels of activity, performance or achievements to differ
materially from results expressed or implied in this press release.
The following factors, among others, could cause actual results to
differ materially from those described in these forward-looking
statements: the risk that Local Bounti will fail to obtain
additional necessary capital when needed on acceptable terms, or at
all; Local Bounti's ability to effectively integrate the acquired
operations of any CEA or similar operations which it acquires into
its existing operations; the ability of Local Bounti to retain and
hire key personnel; the Company's ability to meet the continued
listing requirements of the New York Stock Exchange; the
uncertainty of projected financial information; if and when the
Company will repurchase the stock authorized by its Board of
Directors and the impact of the share repurchase program to the
Company and its stockholders; Local Bounti's increased leverage as
a result of additional indebtedness incurred in connection with the
acquisition of Pete's or as the result of the incurrence of
additional future indebtedness; restrictions contained in Local
Bounti's debt facility agreements with Cargill; Local Bounti's
ability to repay, refinance, restructure and/or extend its
indebtedness as it comes due; Local Bounti's ability to generate
revenue; the risk that Local Bounti may never achieve or sustain
profitability; the risk that Local Bounti could fail to effectively
manage its future growth; Local Bounti's ability to build out
additional facilities; reliance on third parties for construction,
delays relating to material delivery and supply chains, and
fluctuating material prices; Local Bounti's ability to decrease its
cost of goods sold over time; potential for damage to or problems
with Local Bounti's CEA facilities; Local Bounti's ability to
attract and retain qualified employees, including management; Local
Bounti's ability to develop and maintain its brand or brands it may
acquire; Local Bounti's ability to maintain its company culture or
focus on its vision as it grows; Local Bounti's ability to execute
on its growth strategy; the risks of diseases and pests destroying
crops; Local Bounti's ability to compete successfully in the highly
competitive natural food market; Local Bounti's ability to defend
itself against intellectual property infringement claims; changes
in consumer preferences, perception and spending habits in the food
industry; seasonality; Local Bounti's ability to achieve its
sustainability goals; and other risks and uncertainties indicated
from time to time, including those under "Risk Factors" and
"Forward-Looking Statements" in Local Bounti's Annual Report on
Form 10-K for the year ended December 31,
2022, filed with the SEC on March 31,
2023, as supplemented by other reports and documents Local
Bounti files from time to time with the SEC. Local Bounti cautions
that the foregoing list of factors is not exclusive and cautions
readers not to place undue reliance upon any forward-looking
statements, which speak only as of the date hereof. Local Bounti
does not undertake or accept any obligation or undertaking to
update or revise any forward-looking statements to reflect any
change in its expectations or any change in events, conditions, or
circumstances on which any such statement is based.
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SOURCE Local Bounti