Loan & DebtAug 7, 2026, 04:59 PM
Local Bounti Secures $12.5M Convertible Note & Warrants
AI Summary
Local Bounti Corporation entered into a Convertible Note and Warrant Purchase Agreement with U.S. Bounti, LLC, securing $12.5 million. The financing includes a convertible note with a 7.0% annual interest rate and warrants to purchase 1,000,000 shares. The proceeds are designated for working capital and general corporate purposes. The company will seek stockholder approval by November 30, 2026, for the full conversion and exercise of the securities, as required by NYSE rules.
Key Highlights
- Secured $12.5 million through a Convertible Note and Warrant Purchase Agreement.
- Convertible Note has an initial principal of $12.5 million with 7.0% annual PIK interest.
- Note is convertible into common stock at an initial price of $1.37 per share.
- Warrant allows purchase of 1,000,000 shares at an exercise price of $0.125 per share.
- Proceeds will be used for working capital and general corporate purposes.
- Stockholder approval required for conversion/exercise exceeding 1% of outstanding stock.
- Company to seek stockholder approval by November 30, 2026.
- Note is subordinated to the existing Senior Credit Agreement.
Price Impact
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