Local Bounti (LOCL) 10% Owner Charles R. Schwab Buys 1,000,000 Shares

What Happened

• Charles R. Schwab, listed as a 10% owner, is recorded as acquiring rights to 1,000,000 shares on August 7, 2026. The filing shows a purchase (code P) of 1,000,000 shares with the per-share price reported as N/A.
• Footnote to the filing explains the economic transaction: U.S. Bounti, LLC purchased from Local Bounti a $12.5 million convertible note and a warrant that gives the holder the right to acquire 1,000,000 shares of common stock. The $12.5M covers both the note and the warrant (combined purchase price).
• This is a purchase (a financing/derivative acquisition) rather than an outright open-market buy of issued shares; the warrant must be exercised (and the note converted) to receive underlying shares.

Key Details

• Transaction date: August 7, 2026 (Period of Report); Form 4 filed August 10, 2026 (timely filed).
• Transaction type/code: P = Purchase (derivative/warrant and convertible note); reported share count: 1,000,000; price per share: N/A in Form 4; combined cash consideration: $12.5 million (for the note + warrant).
• Shares owned after transaction: The filing does not state total shares beneficially owned by the reporting person; footnote indicates the securities are held by U.S. Bounti, LLC.
• Important limitation: the Purchase Agreement caps issuance on conversion/exercise at 233,696 shares unless stockholder approval is obtained and effective (Issuer must seek approval by a special meeting no later than Nov 30, 2026).
• Footnotes: F1 describes the Purchase Agreement and the 233,696-share issuance limit; F2 notes the securities are held by U.S. Bounti.

Context

• This filing documents acquisition of a convertible note and a warrant (derivative rights), not immediate issuance of 1,000,000 shares to the holder. The warrant gives the right to buy shares in the future if exercised.
• As a 10% owner (institutional/large holder), this transaction appears to be corporate financing-related rather than routine executive share trading. Retail investors should note the issuer must obtain shareholder approval before the full 1,000,000 shares can be issued; until then the practical maximum issuance tied to this deal is 233,696 shares.