Local Bounti Secures $10 Million Financing, Reduces Debt through Convertible Note and Credit Facility Amendment

Local Bounti has secured $10 million in additional financing through a convertible note from an existing investor, and amended its credit facility to reduce principal debt by $10 million. The company will issue warrants for up to 550,000 shares of common stock at $0.125 per share. This financing underscores the investor's confidence in Local Bounti's agricultural methodologies and positions the company for long-term growth and sustainability.

Local Bounti Corporation (LOCL) has secured $10 million in additional financing through a convertible note from an existing investor. The company also amended its credit facility to reduce principal debt by $10 million. As part of the deal, Local Bounti will issue warrants for up to 550,000 shares of common stock at $0.125 per share [1].

The convertible note features a 5-year maturity and a 6.0% annual interest rate payable in kind. The remaining terms of the senior debt facility remain aligned with agreements from March 31, 2025. This financing underscores the investor's confidence in Local Bounti's agricultural methodologies and positions the company for long-term growth and sustainability.

Local Bounti's recent financial performance has shown signs of improvement. In Q1 2025, the company reported a 38% increase in sales to $11.6 million, with an adjusted gross margin of 29%. However, the net loss widened to $37.7 million due to increased interest expenses [2].

The company expects Q2 2025 sales of $12.0-12.5 million and projects reaching positive adjusted EBITDA in Q3 2025 through expanded distribution, yield improvements, and cost management initiatives [2]. This additional financing will support these growth initiatives and further strengthen the company's financial position.

References:
[1] https://www.stocktitan.net/news/LOCL/
[2] https://www.stocktitan.net/news/LOCL/