Filing Overview
Local Bounti Corporation filed a Form 8-K dated October 17, 2023, under Item 3.01. The filing concerns a trading halt and proposed delisting of the company’s warrants from the New York Stock Exchange (NYSE). The filing was signed on October 20, 2023.
Business Context and Reporting Period
Local Bounti is a Delaware corporation headquartered in Hamilton, Montana. Its common stock trades on the NYSE under the symbol LOCL. The affected warrants trade under LOCL WS and were originally issued when the company operated as Leo Holdings III Corp., a special purpose acquisition company.
Material Event
- On October 17, 2023, the company received notice that the NYSE had halted trading in its warrants because of their low trading price.
- On October 18, 2023, NYSE Regulation notified the company that it had commenced proceedings to delist the warrants because they were no longer suitable for listing due to “abnormally low” price levels under Section 802.01D of the NYSE Listed Company Manual.
- The NYSE is expected to apply to the Securities and Exchange Commission to delist the warrants after applicable procedures are completed.
- The company was evaluating whether to appeal the NYSE’s determination.
- Trading in the company’s common stock was expected to continue unaffected on the NYSE under LOCL.
Financial Metrics and Liquidity
This filing does not provide revenue, profit, cash flow, margin, debt, liquidity, guidance, or other operating or financial metrics.
Outlook, Risks, and Unusual Items
The proposed warrant delisting could affect the liquidity and marketability of the warrants. The filing does not state whether the company will appeal or provide an expected completion date for the delisting process. The common stock’s NYSE listing was not identified as being subject to the reported action.
Investor Verification Items
- Confirm the final NYSE and SEC status of the LOCL WS warrant delisting.
- Determine whether Local Bounti appealed the NYSE determination and the outcome of any appeal.
- Review the warrant terms, including the exercise price of $149.50 per share and any effects of delisting on exercise, transferability, or liquidity.
- Verify that LOCL common stock continues to satisfy applicable NYSE listing requirements.