Local Bounti (NYSE:LOCL) previously announced securing a PIPE (Private Investment in Public Equity) Financing From Fidelity & BNP Paribas where the company agreed to issue an overall 9,320,000 shares of Common Stock at a purchase price of USD 2.50 (Which was the closing price of the Common Stock on New York Stock Exchange on October 20, 2022) per share issued. The company should get about USD 23.3M in gross proceeds which it expects to use for general corporate purposes.
Yesterday, the company released a Form 8-K announcing that it closed the sale of 3,200,000 shares with gross proceeds of USD 8M pursuant to the second closing of its PIPE financing. The Second Closing was subject to the effectiveness of a resale registration statement covering the resale of such Common Shares, which became effective on November 1, 2022.
At an initial closing under the Securities Purchase Agreement on October 21, 2022, the Company sold, and certain Purchasers purchased, 6,120,000 shares of Common Stock for gross proceeds of USD 15.3 million.
Affiliates of certain members of our Board of Directors and executive officers purchased an aggregate of 280,000 shares of Common Stock in the Private Placement.
The company remains one of the top-performing stocks in the indoor farming sector with a share price of USD 2.62 at closing on November 2nd driven by good financial performance in previous quarters, comments from BlackRock that led its stock to skyrocket, and the diversification of its product portfolio.
Image provided by Local Bounti (NYSE:LOCL)