Local Bounti Secures $10mln Financing, Amends Credit Facility to Reduce Principal Debt.

Local Bounti Corporation, a US indoor agriculture company, has secured $10 million through the issuance of a convertible note with an existing investor and amended its credit facility to reduce the principal balance by $10 million. The additional capital is expected to fuel the company's future success.

Local Bounti Corporation (NYSE: LOCL), a leading U.S. indoor agriculture company, has successfully secured an additional $10 million through the issuance of a convertible note with an existing investor. In conjunction with this agreement, the company amended its credit facility to reduce the principal balance by $10 million [1]. The move is expected to bolster the company's financial position and support its future growth.

The convertible note, with a 5-year maturity date and an annual interest rate of 6.0%, was issued to an existing investor. As part of the transaction, Local Bounti will issue a warrant to purchase up to 550,000 shares of common stock at an exercise price of $0.125 per share [1]. The full terms of the convertible note, warrant, and debt reduction are detailed in the company's Current Report on Form 8-K.

"We are pleased to have the continued support of our financing partners to fuel our future success," said Kathleen Valiasek, President, CEO, and CFO of Local Bounti. "This additional capital, combined with the incremental debt reduction from our amended credit agreement, reinforces our balance sheet, positioning us well for continued operational strength ahead."

Local Bounti operates advanced indoor growing facilities across the United States, servicing approximately 13,000 retail doors. The company's patented Stack & Flow Technology® significantly improves crop turns, increases output, and enhances unit economics. By integrating controlled environment agriculture with natural elements, Local Bounti's sustainable growing methods use 90% less land and 90% less water than conventional farming methods [1].

The company's mission is to revolutionize agriculture, ensuring accessibility to fresh, sustainable, locally grown produce and nourishing communities everywhere for generations to come. With this additional financing, Local Bounti aims to expand its operations and further its commitment to sustainable farming practices.

The article includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including, but not limited to statements regarding the terms of the transaction, financial condition, and future operational strength. These statements are subject to known and unknown risks, uncertainties, and other factors that may cause actual results, levels of activity, performance, or achievements to differ materially from results expressed or implied in this press release [1].

References:
[1] https://www.marketscreener.com/news/local-bounti-secures-additional-financing-with-existing-investors-ce7c5edadc8af420