Local Bounti (LOCL) gets $12.5M from Schwab affiliate via note and warrant
Rhea-AI Filing Summary
Local Bounti Corporation reported a Form 4 for 10% owner Charles R. Schwab in connection with securities held indirectly through U.S. Bounti, LLC. On August 7, 2026, U.S. Bounti entered into a Purchase Agreement with Local Bounti to buy, for a combined $12.5 million, a $12.5 million convertible note initially convertible into 9,124,088 shares of common stock at $1.37 per share and a warrant to purchase 1,000,000 common shares at an exercise price of $0.125 per share. U.S. Bounti cannot receive more than 233,696 common shares from converting the note or exercising the warrant until required stockholder approval, which the company is required to seek at a special meeting no later than November 30, 2026.
Positive
- None.
Negative
- None.
Insider Trade Summary
2 transactions reported
Mixed
2 txns
Insider
Schwab Charles R.
Role
10% Owner
Bought
1,000,000 shs
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Purchase | Convertible Note F1, F2 | -- | -- | -- |
| Purchase | Common Stock Purchase Warrant F1, F2 | 1,000,000 | -- | -- |
Holdings After Transaction:
Convertible Note — 0 shares (Indirect, By LLC);
Common Stock Purchase Warrant — 1,000,000 shares (Indirect, By LLC)
Footnotes (2)
- F1. On August 7, 2026, U.S. Bounti, LLC ("U.S. Bounti") and Local Bounti Corporation (the "Issuer") entered into an agreement (the "Purchase Agreement") under which U.S. Bounti purchased from the Issuer, for a combined purchase price of $12.5 million, (i) a convertible note with an initial principal balance of $12.5 million (the "Note") and (ii) a warrant (the "Warrant") pursuant to which U.S. Bounti has the right to purchase and acquire 1,000,000 shares of the Issuer's common stock, par value $0.0001 per share ("Common Stock"). Pursuant to the Purchase Agreement, U.S. Bounti will not have the right to receive, upon conversion of the Note or exercise of the Warrant, any shares of Common Stock if the issuance of such shares would exceed 233,696. Such limitation will not apply after stockholder approval is obtained and deemed effective, as required by the New York Stock Exchange. The Issuer is required to seek such stockholder approval at a special meeting no later than November 30, 2026.
- F2. Securities held by U.S. Bounti.
Key Figures
Combined purchase price: $12.5 million
Convertible note principal: $12.5 million
Note conversion price: $1.37 per share
+5 more
8 metrics
Combined purchase price
$12.5 million
Paid by U.S. Bounti, LLC for the convertible note and warrant on August 7, 2026
Convertible note principal
$12.5 million
Initial principal balance of the note purchased from Local Bounti
Note conversion price
$1.37 per share
Conversion price for the convertible note into Local Bounti common stock
Shares underlying note
9,124,088 shares
Initial number of common shares underlying the convertible note
Warrant shares
1,000,000 shares
Common shares purchasable under the Common Stock Purchase Warrant
Warrant exercise price
$0.125 per share
Exercise price for the 1,000,000-share Common Stock Purchase Warrant
Pre-approval share cap
233,696 shares
Maximum common shares issuable from the note and warrant before stockholder approval
Approval deadline
November 30, 2026
Latest date for special meeting to seek required stockholder approval
Key Terms
convertible note, Common Stock Purchase Warrant, stockholder approval, special meeting, +1 more
5 terms
convertible note financial
"a convertible note with an initial principal balance of $12.5 million"
A convertible note is a type of loan that a company gets from investors, which can later be turned into company shares instead of being paid back in cash. It matters because it helps startups raise money quickly without setting a fixed value for the company right away, making it easier to grow and attract investors.
Common Stock Purchase Warrant financial
"a warrant (the "Warrant") pursuant to which U.S. Bounti has the right"
A common stock purchase warrant is a tradable certificate that gives its holder the right to buy a company’s common shares at a fixed price for a set period. Think of it as a coupon that lets you buy stock later at today’s agreed price; it can amplify gains if the share price rises but also can increase the total number of shares outstanding, which may reduce existing owners’ percentage of the company. Investors watch warrants because they offer leveraged upside and can affect future share value and ownership.
stockholder approval regulatory
"Such limitation will not apply after stockholder approval is obtained"
Stockholder approval is formal consent given by a company’s shareholders, usually through a vote at a meeting or by proxy, for major actions such as mergers, asset sales, changes to corporate structure, or amendments to governance rules. Investors pay attention because the vote can enable or block steps that materially change a company’s direction, ownership or value—like neighbors voting to allow a major renovation that would alter a building’s use and worth.
special meeting regulatory
"required to seek such stockholder approval at a special meeting no later"
A special meeting is a shareholder gathering called outside the regular annual meeting to decide on urgent or specific corporate matters, such as mergers, major asset sales, changes to the board, or shareholder proposals. It matters to investors because decisions made there can quickly alter a company’s strategy, ownership or value—like a sudden boardroom decision that changes the game—so shareholders may need to vote, adjust holdings, or reassess risk based on the outcome.
New York Stock Exchange regulatory
"as required by the New York Stock Exchange. The Issuer is required"
The New York Stock Exchange is a marketplace where people buy and sell shares of publicly traded companies. It functions like a busy trading hub, helping investors transfer ownership of company parts and providing a way to gauge how well businesses are doing. Its role is vital because it offers liquidity and transparency, making it easier for investors to buy and sell investments confidently.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What did Charles R. Schwab’s affiliate purchase in Local Bounti (LOCL)?
An entity associated with Charles R. Schwab, U.S. Bounti, LLC, purchased a $12.5 million convertible note and a warrant to buy 1,000,000 Local Bounti common shares, for a combined purchase price of $12.5 million.
What are the conversion and exercise prices on the new Local Bounti (LOCL) securities?
The convertible note held by U.S. Bounti, LLC has a conversion price of $1.37 per share. The accompanying Common Stock Purchase Warrant has an exercise price of $0.125 per share for up to 1,000,000 Local Bounti common shares.
How long do the Schwab-affiliated Local Bounti (LOCL) securities last?
The convertible note purchased by U.S. Bounti, LLC has an expiration date of August 7, 2031. The related Common Stock Purchase Warrant expires later, on August 7, 2036, if not earlier exercised under its terms.