Key Takeaways:
- $10 million raised via a convertible note with an existing investor
- Amendment to credit facility reduces principal by $10 million
- Convertible note includes a 6.0% annual interest rate and five-year maturity
- Warrant issued for purchase of 550,000 shares at $0.125 per share
- Company cites improved balance sheet positioning for operational growth
Local Bounti Strengthens Balance Sheet with Additional Capital
Convertible Note and Credit Agreement Adjustment
Local Bounti Corporation announced that it has raised $10 million through the issuance of a convertible note with an existing strategic investor. Alongside the note issuance, the company has amended its current credit facility to reduce its principal balance by the same amount.
The convertible note has a five-year maturity and carries a 6.0% annual interest rate, payable in kind. As part of the transaction, Local Bounti issued a warrant to the investor to purchase up to 550,000 shares of common stock at an exercise price of $0.125 per share.
The company stated that all other terms of the senior debt facility remain in place, following its earlier restructuring agreement dated March 31, 2025.
Local Bounti Leadership Comments on the Agreement
CEO Highlights Operational Impact
Commenting on the announcement, Kathleen Valiasek, President, CEO, and CFO of Local Bounti, said, “We are pleased to have the continued support of our financing partners to fuel our future success. This additional capital provided by an existing strategic investor, combined with the incremental debt reduction from our amended credit agreement, reinforces our balance sheet, positioning us well for continued operational strength ahead.”
This move follows Local Bounti’s broader strategy of maintaining financial stability while expanding its operations across the U.S.
About Local Bounti Corporation and Future Outlook
Company Continues U.S. Expansion
Local Bounti operates indoor growing facilities across the United States and services approximately 13,000 retail doors. Its approach integrates controlled environment agriculture with natural elements using its patented Stack & Flow Technology®. According to the company, this method uses 90% less land and water than traditional farming.
Local Bounti has positioned its mission around providing access to “fresh, sustainable, locally grown produce,” while navigating a dynamic financial and agricultural landscape. The company remains subject to various risks, including capital needs, market competition, and operational scalability, as outlined in its SEC filings.
