Local Bounti (LOCL) Raises $10M and Cuts Debt with Convertible Note

Local Bounti Corporation (NYSE:LOCL) is one of the best NYSE penny stocks to invest in now. On August 4, the company announced that it had secured an additional $10 million in financing through the issuance of a convertible note with an existing investor. The note has a five-year maturity and an annual interest rate of 6.0%, payable in kind, meaning interest will be paid with additional securities rather than cash.

Local Bounti (LOCL) Raises $10M and Cuts Debt with Convertible Note

Alongside this financing, Local Bounti amended its existing credit facility to reduce the principal balance by $10 million, effectively lowering its debt. As part of the transaction, the company will issue a warrant to the investor, which entitles the investor to purchase up to 550,000 shares of common stock at an exercise price of $0.125 per share. The terms of the company’s senior debt facility remain consistent with those of previous restructuring agreements as of March 31, 2025.

CEO Kathleen Valiasek highlighted that the new capital and debt reduction strengthen the company’s balance sheet, positioning it for continued operational strength and growth.

Local Bounti Corporation (NYSE:LOCL) is a U.S.-based controlled environment agriculture (CEA) company. It designs and operates indoor vertical farms to grow leafy greens and herbs. It leverages proprietary Stack & Flow technology to optimize crop yield, energy efficiency, and space utilization across its facilities in Montana, Georgia, and California.

While we acknowledge the potential of LOCL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LOCL and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.