Separately, a letter agreement with Cargill Financial amends the senior credit facility liquidity covenant to USD 3.5 million through March 31, 2027, then USD 2 million.
Convertible note and warrant agreement with U.S. Bounti
Local Bounti entered a Convertible Note and Warrant Purchase Agreement with U.S. Bounti for a USD 12.5 million convertible note.
The note carries 7% annual interest, paid in kind through semiannual principal increases starting Dec. 31, 2026; cash interest may start Dec. 31, 2029.
The initial conversion price is set at USD 1.37; full conversion of the initial principal would issue 9,124,088 shares, before any PIK interest.
The agreement also includes a warrant for 1,000,000 shares at a USD 0.125 exercise price, expiring 10 years from the initial exercise date.
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