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Charles R. Schwab Jr., a director at Local Bounti Corporation (NYSE:LOCL), recently made significant stock acquisitions, as disclosed in a recent SEC filing. On March 31, 2025, Schwab purchased 70,863 shares of Local Bounti’s common stock at a price of $2 per share, amounting to a total of $141,726. This acquisition was part of a broader transaction that included the purchase of 429,137 shares of Series A Convertible Preferred Stock, also priced at $2 per share. The purchase comes as the company faces challenges, with InvestingPro data showing significant debt levels and a concerning cash burn rate. The company’s market capitalization stands at $18.5 million, with revenue of $38.1 million in the last twelve months.
The preferred stock purchase is subject to a Securities Purchase Agreement, which includes a provision for conversion into common stock. The conversion is contingent upon approval from Local Bounti’s stockholders at the upcoming 2025 annual meeting. Until then, the number of common shares issued upon conversion will not exceed 19.99% of the company’s outstanding common stock. InvestingPro analysis reveals the company’s current valuation metrics and 13 additional key insights available to subscribers. If the conversion is not approved within a year, the preferred stock can be redeemed at the original purchase price.
In other recent news, Local Bounti Corp reported a 38% increase in full-year sales, reaching $38.1 million compared to the previous year. The company also noted an improvement in its fourth-quarter adjusted gross margin by 200 basis points year-over-year. For the first quarter of 2025, Local Bounti anticipates sales of approximately $11.5 million. The company has opened new facilities in Washington and Texas and expanded partnerships with major retailers, including Walmart (NYSE:WMT). Local Bounti is targeting positive adjusted EBITDA by the third quarter of 2025 and is exploring strategic acquisition opportunities. The company has reduced annualized expenses by $3 million in the first quarter of 2025, contributing to its operational efficiency. Additionally, Local Bounti secured $27.5 million in new funding and restructured its debt, reducing it by nearly 40%. This financial restructuring positions the company for future growth and stability under the leadership of newly appointed CEO Kathleen Balacek.
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