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Local Bounti Faces NYSE Listing Standard Notice

In a significant development, Local Bounti Corporation (NYSE: LOCL) has been notified by the New York Stock Exchange (NYSE) regarding issues surrounding its compliance with the exchange's ongoing listing standards. The notice, received on February 5, 2026, states that Local Bounti's average global market capitalization has fallen below the required threshold of $50 million over a consecutive 30-day trading period, alongside reporting stockholder equity that dives beneath the same figure. This situation places the company in a precarious position concerning its listing status on the NYSE.

Understanding the NYSE Notice

The NYSE has stringent criteria outlined in its Listing Company Manual, which governs the continued trading of stocks on the exchange. According to Section 802.01B, maintaining a minimum market capitalization of $50 million is vital for firms listed on the NYSE. The notification signals potential challenges ahead for Local Bounti, as non-compliance could lead to its delisting unless corrective actions are initiated swiftly.

Local Bounti has confirmed that it intends to submit a comprehensive compliance plan to the NYSE within 45 days of receiving the notice. This plan will detail actions that the company is taking to rectify its financial metrics and achieve compliance over the allowed nine-month Market Capitalization Cure Period.

Implications and Company Response

As of now, this notice does not affect the trading of Local Bounti's shares on the NYSE; the company can continue to operate as usual during the Cure Period. However, Local Bounti must navigate this situation carefully, keeping in mind that any remedial actions it proposes must be backed by the NYSE's approval before they can positively impact its listing. The company acknowledges that it cannot guarantee that it will satisfy all requirements to retain its NYSE listing moving forward.

In response to this challenge, Local Bounti will explore every potential avenue to boost its market position and address the compliance concerns raised by the NYSE, as maintaining a robust listing on a prominent exchange is critical for investor confidence and future growth prospects.

About Local Bounti

Founded with a vision to transform the agricultural landscape, Local Bounti is making waves in the indoor farming sector through its proprietary Stack & Flow Technology®. This innovative approach significantly enhances crop yield and shortens production cycles, setting Local Bounti apart in a competitive marketplace. Currently, the company operates multiple advanced indoor growing facilities across the United States, serving around 13,000 retail outlets. With a commitment to sustainability, Local Bounti utilizes 90% less land and water than traditional farming methods, providing fresh, nutritious produce that lasts longer than its conventionally grown counterparts. Their mission is underscored by a focus on ensuring that communities everywhere have access to sustainably grown food, fostering a healthier planet for future generations.

As Local Bounti charts its path forward, it remains hopeful about meeting NYSE standards and continuing its journey of innovation in indoor agriculture. Stakeholders and industry observers will be watching closely as the company prepares its compliance plan and strives to regain financial stability necessary to uphold its listing.