HAMILTON, Mont. - Local Bounti Corporation (NYSE: LOCL), a U.S. company engaged in indoor agriculture, has received approval from the New York Stock Exchange (NYSE) for its plan to address noncompliance with the exchange's listing standards. The NYSE has granted Local Bounti 18 months, commencing from April 3, 2024, to meet the required standards.
On April 3, the company was notified of its noncompliance due to its average global market capitalization falling below $50 million over a 30-day trading period, coupled with stockholders' equity also being less than $50 million. Local Bounti's plan, which aims to regain compliance, will be reviewed quarterly by the NYSE. Failure to progress in line with the plan or to regain compliance by the end of the 18 months could lead to delisting proceedings.
The acceptance of the plan by the NYSE enables Local Bounti's shares to continue trading on the exchange during this period. The company's operations and SEC reporting requirements remain unaffected by this notice.
Local Bounti is known for its patented Stack & Flow Technology®, which enhances crop yields and unit economics. The company operates several advanced indoor growing facilities in the U.S., supplying around 13,000 retail locations. Local Bounti emphasizes sustainable agriculture, using significantly less land and water compared to traditional farming methods.
This announcement is based on a press release statement.
In other recent news, Local Bounti Corporation reported robust growth in the first quarter of 2024, with sales increasing by 25% to $8.4 million. This surge is attributed to the company's innovative Stack & Flow Technology, which has resulted in a 10% yield increase in its Georgia facility. Additionally, new facilities in Washington and Texas are expected to commence shipping in the second quarter.
Local Bounti has also secured partnerships with Albertsons (NYSE:ACI) and Brookshire's, contributing to the expansion of its distribution network. The company maintains a solid financial position, with $14.7 million in cash reserves and an anticipated financing of approximately $228 million.
For the full year of 2024, Local Bounti estimates revenues to be between $50 million and $60 million, with a prediction of sequential revenue growth from Q1 to Q2. The company is also optimistic about achieving a positive adjusted EBITDA by early 2025.
These recent developments underline Local Bounti's operational progress and strategic growth initiatives.
InvestingPro Insights
Local Bounti Corporation (NYSE: LOCL) is navigating through challenging financial waters as it works to comply with the NYSE's listing standards. According to recent data from InvestingPro, the company's market capitalization stands at a modest $22.07 million, reflecting the urgency behind its plan to meet the exchange's requirements. Despite a significant debt load and concerns over its ability to service interest payments, analysts tracking the company are forecasting sales growth in the current year, which could be a positive sign for its turnaround efforts.
The company's revenue growth has been notable, with a 12.95% increase over the last twelve months as of Q1 2024. This is further bolstered by a quarterly revenue growth of 25.16% in Q1 2024. However, these figures are juxtaposed with a stark operating income margin at -237.5%, indicating substantial losses relative to its revenue. Additionally, the price of Local Bounti's stock has experienced considerable volatility, with a 1-week price total return of -11.5% and a 1-month return of -14.75%, although there has been some recovery with a 3-month total return of 4.0%.
InvestingPro Tips reveal that Local Bounti does not pay dividends and is not expected to be profitable this year. With a current P/E ratio of -0.17 and an adjusted P/E ratio for the last twelve months as of Q1 2024 at -0.21, the company's earnings do not currently support its stock price. Moreover, with short-term obligations exceeding its liquid assets, Local Bounti faces liquidity challenges. In light of these insights, investors may find it valuable to explore the full range of InvestingPro Tips available for Local Bounti at InvestingPro to better understand the company's financial position and prospects.
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