Velodyne issues warrant for 39.6 million shares to Amazon subsidiary

Reuters

– A subsidiary of Amazon.com Inc has secured a warrant to acquire 39.6 million shares in Velodyne Lidar Inc, the sensor maker said on Monday, more than doubling its share price in after-market trade.

Shares were up 88% at $7.09, as of 16:35 ET, after gaining as much as 127%.

Velodyne had lost about 80% in value in 2021 amid internal conflict with management as well as the resignation of its former chief executive Anand Gopalan in July.

According to the deal, Amazon.com NV Investment Holdings, a wholly-owned subsidiary of Amazon, can exercise the warrant on or before Feb. 4, 2030 at $4.18 per share. Velodyne shares closed Monday at $3.77.


The warrant shares will vest over time based on “discretionary payments” to Velodyne by Amazon of up to $200 million. According to the terms of the deal, Amazon can appoint a board observer when its shareholding crosses 12.3 million shares.

(Reporting by Yuvraj Malik and Eva Mathews in Bengaluru; Editing by Krishna Chandra Eluri)

tagreuters.com2022binary_LYNXMPEI16146-BASEIMAGE

You appear to be using an ad blocker

Shore News Network is a free website that does not use paywalls or charge for access to original, breaking news content. In order to provide this free service, we rely on advertisements. Please support our journalism by disabling your ad blocker for this website.