On March 13, 2026, Local Bounti Corporation, a Delaware-based company, entered into a Convertible Note and Warrant Purchase Agreement with U.S. Bounti, LLC. This agreement allows for the purchase and issuance of a convertible note with an initial principal balance of $15 million and a common stock purchase warrant. The warrant grants the purchaser the right to acquire 5,500,000 shares of Local Bounti's common stock at an exercise price of $0.125 per share. The proceeds from this transaction are intended for working capital, general corporate purposes, and specific capital expenditures as outlined in the agreement.

The convertible note carries an interest rate of 7.0% per annum, with interest payments structured to commence on December 31, 2026. Notably, the note is convertible into shares of common stock at an initial conversion price of $2.50 per share, subject to adjustments for stock splits and other corporate actions. The agreement stipulates that 50% of the note obligations will automatically convert into shares on the fourth anniversary of the issuance date, with the remaining balance due at maturity on March 13, 2031.

Additionally, the agreement includes provisions for customary representations, warranties, and covenants, as well as standard events of default. The company is also required to seek stockholder approval for the issuance of shares upon conversion or exercise of the warrant, which must be obtained by June 30, 2026. This financing move is expected to enhance Local Bounti's liquidity position and support its operational strategies moving forward.

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