HAMILTON, Mont. - Local Bounti Corporation (NYSE: LOCL), an indoor agriculture company, is facing potential delisting from the New York Stock Exchange (NYSE) after receiving a notice on Monday that it does not meet the exchange's continued listing standards. The company's average global market capitalization fell below $50 million over a consecutive 30-trading-day period, and its stockholders' equity was also less than $50 million.
Local Bounti has 45 days from the notice date to present a plan to the NYSE detailing actions to regain compliance with the Minimum Market Capitalization Standard. The company has an 18-month period, known as the Market Capitalization Cure Period, to address this issue. The NYSE will evaluate the plan, and during this period, Local Bounti's common stock will continue to be traded on the exchange.
There is no certainty that Local Bounti will be able to meet the NYSE's requirements within the Market Capitalization Cure Period or maintain its listing. The company stated it is exploring all available options to regain compliance with the NYSE's standards.
Local Bounti specializes in indoor farming using its patented Stack & Flow Technology®, which claims to enhance crop production and economics. The company operates several indoor growing facilities across the United States and supplies approximately 13,000 retail doors. Local Bounti emphasizes its sustainable approach, using significantly less land and water compared to traditional farming methods.
This announcement is based on a press release statement from Local Bounti.
InvestingPro Insights
As Local Bounti Corporation (NYSE: LOCL) navigates the challenges of meeting the NYSE's continued listing standards, a glance at the company's financial health through InvestingPro data reveals a complex picture. The company's market capitalization stands at a modest $21.52 million, reflecting the concerns that have led to the potential delisting notice. With a negative P/E ratio of -0.22 for the last twelve months as of Q4 2023, it underscores the company's difficulties in generating profit relative to its share price.
Despite these challenges, the company has demonstrated a strong revenue growth of 41.51% over the last twelve months as of Q4 2023. However, with a gross profit margin of just 8.04% during the same period, it's evident that Local Bounti is grappling with weak profitability. This is further compounded by the InvestingPro Tip that the company is suffering from weak gross profit margins, which could be a contributing factor to its current financial strain.
Investors looking for a deeper dive into Local Bounti's financial analysis can find additional insights by exploring more InvestingPro Tips. For instance, Local Bounti is noted to have a significant debt burden and may have trouble making interest payments on its debt. These are critical considerations for any investor evaluating the company's long-term viability. For those interested in a comprehensive analysis, there are 13 additional InvestingPro Tips available, which can be accessed for a deeper understanding of the company's financial position and market performance.
For investors seeking to leverage these insights, InvestingPro offers a wealth of detailed analytics and metrics. To get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, use the coupon code PRONEWS24. This could be an invaluable tool for those monitoring Local Bounti's efforts to regain compliance with NYSE standards and assessing the company's future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.