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In a notable transaction reported on March 31, Charles R. Schwab, a significant shareholder of Local Bounti Corporation (NYSE:LOCL), acquired a substantial amount of the company’s stock. Schwab purchased 1,700,723 shares of Local Bounti’s common stock at a price of $2.00 per share, amounting to a total investment of approximately $3.4 million. This acquisition was made indirectly through U.S. Bounti, LLC, as indicated in the filing. The purchase comes at a time when Local Bounti faces significant challenges, with InvestingPro data showing the company’s financial health score at a weak 1.39, though analysts maintain a bullish stance with price targets ranging from $5 to $10.
In addition to the common stock acquisition, Schwab also participated in a significant purchase of Series A Non-Voting Convertible Preferred Stock. Through U.S. Bounti, LLC, Schwab acquired 10,299,277 shares of this preferred stock, also at $2.00 per share. These transactions highlight Schwab’s continued investment interest in Local Bounti, a company focused on agriculture production and innovation. According to InvestingPro, the company has shown revenue growth of 38.4% in the last twelve months, despite operating with significant debt and rapid cash burn. For deeper insights into Local Bounti’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
The transactions reflect Schwab’s strategic positioning in the company, with holdings now including substantial shares indirectly owned through various entities, including trusts and LLCs. With a current market capitalization of just $18.5 million and a debt-to-capital ratio of 0.97, the company’s financial structure presents both challenges and opportunities for strategic investors.
In other recent news, Local Bounti Corp reported a notable 38% increase in full-year sales, reaching $38.1 million. The company also improved its fourth-quarter adjusted gross margin by 200 basis points year-over-year. Local Bounti anticipates Q1 2025 sales of approximately $11.5 million. The company has opened new facilities in Washington and Texas and has expanded partnerships with major retailers, including Walmart (NYSE:WMT). Local Bounti is targeting positive adjusted EBITDA by Q3 2025, with a focus on operational efficiency and strategic acquisitions. The company recently secured $27.5 million in new funding and restructured its existing credit agreement, reducing debt by nearly 40%. Executive Chairman Craig Hurlburt and CEO Kathleen Balacek have expressed optimism about the company’s strategic initiatives and financial position.
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