Local Bounti expands distribution with Sam’s Club

HAMILTON, Mont. — Local Bounti Corporation (NYSE: LOCL) (“Local Bounti” or the “Company”), a pioneering U.S. indoor agriculture company, announced that it has expanded distribution for its customer Sam’s Club’s leafy greens production. Service will begin at the Company’s recently opened CEA facility in Mount Pleasant, Texas. Local Bounti now makes deliveries to six Sam’s regional distribution centers from two of its facilities, including Byron, Georgia.

“The last few months have been pivotal for Local Bounti as we have begun commercial operations at our new cultivation facilities in Washington and Texas,” commented Kathleen Valiasek, President and Chief Financial Officer of Local Bounti. “The additional capacity these facilities provide is critical to our efforts to provide consistent access to fresh, sustainable, locally grown produce to our retail customers. In conjunction with our offtake agreement with Sam’s Club, we are excited to expand our distribution with them and leverage the capabilities of our Texas facility. We have worked tirelessly to optimize our operations and applied those learnings to our Texas and Washington locations, both of which demonstrate the benefits we recognized when we sought to leverage our patented Stack & Flow technology.^® in these specially constructed facilities.”

About Local Bounti

Local Bounti is redefining indoor cultivation with an innovative method – its patented Stack & Flow technology^® – which significantly improves crop yields, increases yield and improves facility economics. Local Bounti operates modern indoor growing facilities across the United States and supplies approximately 13,000 retail stores. Local Bounti grows healthy food using a hybrid approach that combines the best characteristics of controlled environment farming with natural elements. Local Bounti’s sustainable farming methods are better for the planet, using 90% less land and 90% less water than traditional farming methods. With a mission to “revolutionize agriculture, ensure access to fresh, sustainable, locally grown produce and feed communities everywhere for generations to come,” Local Bounti’s food is fresher, more nutritious and lasts longer than traditional farming. To learn more, visit localbounti.com or follow Local Bounti on LinkedIn for the latest news and developments.

Forward-looking statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify these forward-looking statements by the use of words such as “expect,” “will,” “continue,” “believe,” “estimate,” “project,” “intend,” “should,” “shall” or similar expressions, as well as variations or negatives of these words, but the absence of these words does not mean that a statement is not forward-looking. All statements that are not statements of historical fact are statements that could be considered forward-looking statements, including, but not limited to, statements regarding expanded distribution at Sam’s Club. These statements are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, level of activity, performance or achievements to differ materially from those 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 not be able to raise additional capital on acceptable terms when needed, or at all; the risk that Local Bounti will not be able to complete the financings contemplated by the previously announced conditional commitment letters; the ability of Local Bounti to successfully integrate the acquired CEA operations or similar operations into its existing operations; the ability of Local Bounti to retain and hire key personnel; the ability of the Company to meet or cure any failure to meet the ongoing listing requirements of the New York Stock Exchange; the uncertainty of the projected financial results; whether and when the Company will repurchase the shares authorized by the Board of Directors and the impact of the share repurchase program on the Company and its shareholders; the increased indebtedness of Local Bounti as a result of additional indebtedness incurred in connection with the Pete’s acquisition or as a result of the incurrence of additional future indebtedness; restrictions in Local Bounti’s credit facility agreements with Cargill; Local Bounti’s ability to repay, refinance, restructure and/or extend its indebtedness as they come due; Local Bounti’s ability to generate revenue; the risk that Local Bounti will never achieve or maintain profitability; the risk that Local Bounti will not be able to effectively manage its future growth; Local Bounti’s ability to construct additional facilities; dependence on third parties for construction, delays in material deliveries and supply chains and fluctuating material prices; Local Bounti’s ability to reduce its manufacturing costs over time; potential 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 any acquired brands, if any; Local Bounti’s ability to maintain its corporate culture or focus on its vision as it grows; Local Bounti’s ability to execute on its growth strategy; the risk that disease and pests destroy crops; Local Bounti’s ability to compete successfully in the highly competitive natural foods market; Local Bounti’s ability to defend itself against intellectual property infringement claims; changes in consumer preferences, perceptions and spending in the food industry; seasonality; Local Bounti’s ability to achieve its sustainability goals; and other risks and uncertainties identified 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 fiscal year ended December 31, 2023, filed with the SEC on March 28, 2024, as supplemented by other reports and documents that Local Bounti files with the SEC from time to time. Local Bounti cautions that the foregoing list of factors is not exhaustive and cautions readers not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Local Bounti undertakes no obligation or undertaking to update or revise any forward-looking statements to reflect any change in the Company’s expectations or in events, conditions or circumstances on which any such statement is based.