Local Bounti (LOCL) Enters Material Agreement, New Financial Obligation

TL;DR

**LOCL just took on new debt or a big contract, watch for details on its financial impact.**

AI Summary

Local Bounti Corporation (LOCL) filed an 8-K on January 26, 2024, reporting an "Entry into a Material Definitive Agreement" and "Creation of a Direct Financial Obligation" on January 23, 2024. This indicates the company has taken on new debt or entered into a significant contract, which could impact its financial health and future operations. For investors, this matters because new financial obligations can affect profitability, cash flow, and the company's ability to invest in growth, potentially influencing stock performance.

Why It Matters

This filing signals a significant financial event for Local Bounti, potentially impacting its balance sheet and future earnings, which could influence its stock price.

Risk Assessment

Risk Level: medium — The filing indicates new financial obligations without specifying the nature or amount, creating uncertainty about potential positive or negative impacts.

Analyst Insight

A smart investor would seek out the full details of the 'Material Definitive Agreement' and 'Direct Financial Obligation' to understand their nature, size, and potential impact on Local Bounti's financial statements and future prospects before making any investment decisions.

Key Players & Entities

• Local Bounti Corporation/DE (company) — the registrant filing the 8-K
• January 23, 2024 (date) — date of the earliest event reported
• January 26, 2024 (date) — date the 8-K was filed
• 001-40125 (other) — Commission File Number for Local Bounti Corporation
• LOCL (other) — trading symbol for Local Bounti Corporation

FAQ

Key Financial Figures

• $0.0001 — ich registered Common stock, par value $0.0001 per share LOCL New York Stock Exchange
• $13.00 — rice under Section 2(b) thereunder from $13.00 (as adjusted for the Company's 1-for-13
• $6.50 — 5, 2023 (the "Reverse Stock Split")) to $6.50 per share of Common Stock. The Origin

Filing Documents

• locl-20240123.htm (8-K) — 30KB
• a2024-01x23form8xkex41amen.htm (EX-4.1) — 20KB
• a2024-01x23form8xkex101eig.htm (EX-10.1) — 63KB
• 0001840780-24-000002.txt ( ) — 285KB
• locl-20240123.xsd (EX-101.SCH) — 2KB
• locl-20240123_def.xml (EX-101.DEF) — 15KB
• locl-20240123_lab.xml (EX-101.LAB) — 29KB
• locl-20240123_pre.xml (EX-101.PRE) — 16KB
• locl-20240123_htm.xml (XML) — 3KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. Eighth Amendment to Credit Agreements As previously disclosed, in September 2021, Local Bounti Corporation (the "Company"), along with certain subsidiaries of the Company, and Cargill Financial Services International, Inc. ("Cargill Financial") entered into (a) a credit agreement (the "Original Senior Credit Agreement") and (b) a subordinated credit agreement (the "Original Subordinated Credit Agreement" and, together with the Original Senior Credit Agreement, the "Original Credit Agreements"). Also as previously disclosed, in March 2022, August 2022, December 2022, January 2023, March 2023 and October 2023, the Company, along with certain subsidiaries of the Company and Cargill Financial, entered into that certain First Amendment to Credit Agreements and Subordination Agreement, that certain Second Amendment to Credit Agreements, that certain Third Amendment to Credit Agreements, that certain Fourth Amendment to Credit Agreements, that certain Fifth Amendment to Credit Agreements, that certain Sixth Amendment to Credit Agreements and that certain Seventh Amendment to Credit Agreements, respectively, to amend the Original Credit Agreements (as amended, the "Credit Agreements"). On January 23, 2024, the Company, along with certain subsidiaries of the Company, entered into an Eighth Amendment to Credit Agreements (the "Eighth Amendment") with Cargill Financial to further amend the Credit Agreements. The Eighth Amendment allows for the payment in kind of the quarterly interest payments due and payable for the quarter ending March 31, 2024. Common Stock Purchase Warrant Amendment On January 23, 2024, the Company entered into an Amendment to Common Stock Purchase Warrant (the "Warrant Amendment") with Cargill Financial to amend that certain Common Stock Purchase Warrant, dated March 28, 2023, issued by the Company to Cargill Financial (the "Original Warrant" and as amended, the "Warrant") to amend the exerci

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits. Exhibit No. Description 4.1 Amendment to Common Stock Purchase Warrant, dated as of January 23, 2024, by and between Local Bounti Corporation and Cargill Financial Services International, Inc. 10.1 Eighth Amendment to Credit Agreements, dated as of January 23, 2024, by and among Local Bounti Operating Company LLC, Local Bounti Corporation, the guarantors party thereto and Cargill Financial Services International, Inc. 104 Cover Page Interactive Data File (formatted as inline XBRL) SIGNATURE Pursuant to the requirements of the Exchange Act, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Local Bounti Corporation /s/ Kathleen Valiasek Name: Kathleen Valiasek Title: Chief Financial Officer Date: January 26, 2024

View Full Filing

View this 8-K filing on SEC EDGAR