Local Bounti Receives Continued Listing Standard Notice from NYSE
Rhea-AI Summary
Local Bounti (NYSE: LOCL) received a notice from the New York Stock Exchange on Feb 5, 2026 that it is not in compliance with Section 802.01B (Minimum Market Capitalization Standard).
The company reported its 30-day average global market capitalization was below $50 million and its stockholders' equity was below $50 million. Local Bounti intends to submit a plan within 45 days and has nine months to regain compliance; the stock will continue trading during the cure period. The company said it is considering all options but cannot assure reinstatement.
Positive
- Common stock continues trading during the nine-month cure period
- Company may submit a corrective plan within 45 days to regain compliance
Negative
- Average global market capitalization under $50 million
- Stockholders' equity below $50 million
- Risk of NYSE delisting if compliance not restored within nine months
- Company provides no assurance it will maintain NYSE listing
Key Figures
Market Reality Check
Peers on Argus
LOCL fell 4.56% while peer moves were mixed: DTCK -12.4%, EDBL -1.55%, but AQB, AGRI and SISI rose between 2–5%, suggesting a company-specific reaction rather than a broad farm products move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 12 | Earnings results | Positive | +0.4% | Q3 2025 sales growth, margin gains, and reduced operating expenses. |
| Nov 10 | Earnings date | Neutral | -3.8% | Announcement of timing and call details for Q3 2025 results. |
| Oct 13 | Product launch | Positive | +13.8% | Launch of family-size salad kit in 89 Walmart stores in Pacific Northwest. |
| Aug 13 | Earnings results | Positive | +0.8% | Q2 2025 revenue growth, cost cuts, financing actions, and margin improvement. |
| Aug 13 | Management change | Positive | +0.8% | Appointment of experienced CCO to drive commercial and growth strategy. |
Recent positive operating and expansion updates generally aligned with modest to strong share gains, while neutral scheduling news saw small downside moves.
Over the past six months, Local Bounti reported improving financials and operational progress. Q2 and Q3 2025 results showed revenue around $12M per quarter, margin improvement, and multi-million dollar expense reductions, with a stated goal of positive adjusted EBITDA in early 2026. The company also expanded its Walmart presence and launched new salad kits, which coincided with a 13.76% gain. Management changes, including appointing a new CCO, drew mildly positive reactions. Against this backdrop, the NYSE continued listing notice introduces a new structural risk unrelated to operations.
Market Pulse Summary
This announcement highlights that Local Bounti fell below the NYSE’s $50 million average market capitalization and stockholders’ equity thresholds over a 30‑day period, triggering a continued listing notice. The company has up to 45 days to submit a compliance plan and a 9‑month cure period. Recent history shows revenue growth, cost reductions, and Walmart expansion, but this development adds listing risk. Key items to watch include the content of the NYSE plan and progress toward restoring capitalization and equity levels.
Key Terms
new york stock exchange regulatory
nyse regulatory
continued listing standards regulatory
market capitalization financial
stockholders' equity financial
minimum market capitalization standard regulatory
market capitalization cure period regulatory
AI-generated analysis. Not financial advice.
In accordance with NYSE procedures, the Company intends to notify the NYSE that it plans to submit a plan within 45 days of receipt of the Notice advising the NYSE of definitive action it has taken, or is taking, to bring it into compliance with the Minimum Market Capitalization Standard within nine months of receipt of the Notice (the "Market Capitalization Cure Period"). Any plan submitted by the Company to regain compliance would be subject to NYSE approval.
The Notice has no immediate impact on the listing of the Company's common stock, which will continue to trade on the NYSE during the Market Capitalization Cure Period. The Company is considering all available options to regain compliance with the NYSE continued listing standards. The Company can provide no assurances that it will be able to satisfy any of the steps outlined above and maintain the listing of its shares on the NYSE.
About Local Bounti
Local Bounti is redefining indoor farming with an innovative method – its patented Stack & Flow Technology® – that significantly improves crop turns, increases output and improves unit economics. Local Bounti operates advanced indoor growing facilities across
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. In some cases, you can identify these forward-looking statements by the use of terms such as "expect," "will," "continue," "believe," "anticipate," "estimate," "project," "intend," "should," "is to be," or similar expressions, and variations or negatives of these words, but the absence of these words does not mean that a statement is not forward-looking. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including, but not limited to, statements regarding the Company's ability to regain compliance with the Minimum Market Capitalization Standard within the Market Capitalization Cure Period and the Company's ability to continue to comply with applicable listing standards of the NYSE. These statements are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied in this press release. The following factors, among others, could cause actual results to differ materially from those described in these forward-looking statements: Local Bounti's ability to continue as a going concern and the risk that Local Bounti will fail to obtain additional necessary capital when needed on acceptable terms or at all; Local Bounti's ability to generate significant revenue; restrictions and covenants contained in Local Bounti's debt facility agreements with Cargill Financial Services International, Inc. and Local Bounti's ability to comply therewith; the risk that the concentrated ownership of our common stock will prevent other stockholders from influencing significant decisions; the risk that Local Bounti may never achieve or sustain profitability; the risk that Local Bounti could fail to effectively manage its future growth; Local Bounti's ability to complete the build out of its current or additional facilities in the future; Local Bounti's reliance on third parties for construction, the risk of delays relating to material delivery and supply chains, and fluctuating material prices; Local Bounti's ability to scale its operations and decrease its cost of goods sold over time; the potential for damage to or problems with Local Bounti's facilities; the impact that current or future acquisitions, investments or expansions of scope of existing relationships have on Local Bounti's business, financial condition, and results of operations; unknown liabilities that may be assumed in acquisitions; Local Bounti's ability to attract and retain qualified employees; Local Bounti's ability to develop and maintain its brand or brands; Local Bounti's ability to achieve its sustainability goals; Local Bounti's ability to maintain its company culture or focus on its vision as it grows; Local Bounti's ability to execute on its growth strategy; the risk of diseases and pests destroying crops; Local Bounti's ability to compete successfully in the highly competitive markets in which it operates; Local Bounti's ability to defend itself against intellectual property infringement claims or other litigation; Local Bounti's ability to effectively integrate the acquired operations of any CEA or similar operations which it acquires into its existing operations; changes in consumer preferences, perception, and spending habits in the food industry; the risk that seasonality may adversely impact Local Bounti's results of operations; Local Bounti's ability to repay, refinance, restructure, or extend its indebtedness as it comes due; Local Bounti's ability to comply with the continued listing requirements of the NYSE or timely cure any noncompliance thereof; and other risks and uncertainties indicated from time to time, including those under "Risk Factors" and "Forward-Looking Statements" in Local Bounti's Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 31, 2025, as supplemented by other reports and documents Local Bounti files from time to time with the SEC. Local Bounti cautions that the foregoing list of factors is not exclusive and cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date hereof. Local Bounti does not undertake or accept any obligation or undertaking to update or revise any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based.
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SOURCE Local Bounti
FAQ
What did Local Bounti (LOCL) receive from the NYSE on Feb 5, 2026?
How long does Local Bounti (LOCL) have to submit a plan to the NYSE?
How much time does LOCL have to regain NYSE compliance after the notice?
Does the NYSE notice immediately affect trading of Local Bounti (LOCL) shares?
What specific financial thresholds did Local Bounti fail to meet under NYSE rules?
