Fermi Inc. Faces 33% Stock Drop After Tenant Terminates Lease Agreement
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Globenewswire
- Legal Investigation Initiated: Robbins Geller law firm is investigating potential violations of U.S. federal securities laws by Fermi Inc., focusing on whether executives made false statements or failed to disclose material information, which could undermine investor confidence.
- IPO Performance: Fermi conducted its IPO on September 30, 2025, issuing approximately 32.5 million shares at $21.00 each; however, the stock has recently fallen to $10.09, significantly below the IPO price, indicating market concerns about its future.
- Lease Agreement Impact: The First Tenant notified Fermi on December 11, 2025, of the termination of a $150 million Advance in Aid of Construction Agreement, although negotiations for a lease continue, leading to a substantial downgrade in market expectations for future revenue.
- Significant Market Reaction: Following the tenant's termination of the agreement, Fermi's stock price plummeted over 33%, reflecting strong investor concerns regarding the company's financial health, which may affect its future financing capabilities and market trust.
FRMI
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About FRMI
Fermi Inc. is an advanced energy and hyperscale development company purpose-built for the artificial intelligence (AI) era. The Company is engaged in the development of electric grids that deliver highly redundant power at a gigawatt scale, required to create artificial intelligence. Situated on a 5,236-acre site in Amarillo, Texas, Project Matador is secured by the Company pursuant to the Lease on land owned by the Texas Tech University System. Project Matador is designed to accommodate up to 6.0 gigawatt (GW) of nuclear capacity via 4.0 GW of bifurcated Westinghouse Reactors and 2.0 GW of small nuclear reactor (SMRs). Its HyperRedundant site is strategically located adjacent to natural gas fields in the United States that is within a high-radiance solar corridor, well-positioned for advanced nuclear development and supportive of multiple energy pathways including near-term natural gas power development.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
