LOCL · Local Bounti Corporation

Summary

Local Bounti Corporation entered into a Convertible Note and Warrant Purchase Agreement on March 13, 2026, with U.S. Bounti, LLC for a $15.0 million convertible note at 7.0% interest and a warrant to purchase 5,500,000 shares of common stock at $0.125 per share. The note matures on March 13, 2031, is convertible at $2.50 per share, and is subordinated to the Senior Credit Agreement; proceeds will fund working capital, general corporate purposes, and certain capital expenditures.

Key takeaways

• Entered Convertible Note and Warrant Purchase Agreement on March 13, 2026, with U.S. Bounti, LLC for $15.0 million principal.
• Convertible note bears 7.0% PIK interest, semi-annually from December 31, 2026; optional cash interest after third anniversary.
• Initial conversion price of $2.50 per share; 50% auto-converts on March 13, 2030, remainder on maturity March 13, 2031.
• Warrant exercisable immediately for 5,500,000 shares at $0.125 per share, expires March 13, 2036.
• Securities unregistered under Securities Act, relying on Section 4(a)(2) and Rule 506 of Regulation D.
• Letter Agreement with Cargill Financial revises Senior Credit Agreement covenants: minimum liquidity $3.5M through September 30, 2026 then $2.0M; EBITDA testing from March 31, 2027.