Fermi Inc. Faces Investigation Post-IPO as Stock Plummets 33%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: PRnewswire
- Post-IPO Impact: Fermi Inc. completed its IPO on September 30, 2025, selling 32.5 million shares at $21 each, but the stock plummeted over 33% to $10.09 on December 12 after the tenant terminated its agreement, raising concerns about the company's future profitability.
- Lease Agreement Changes: The company had initially secured a long-term lease intent with an investment-grade tenant and signed a construction agreement worth up to $150 million, but the termination of this agreement highlights vulnerabilities in its business model as lease negotiations continue.
- Legal Investigation Initiated: Edelson Lechtzin LLP is investigating potential violations of federal securities laws by Fermi, related to allegations of providing misleading business information to investors, which could lead to increased legal risks and potential liabilities, impacting the company's reputation.
- Investor Loss Risk: Investors in Fermi face significant loss risks, especially following the sharp decline in stock price, as Edelson Lechtzin LLP calls for affected investors to provide information, potentially triggering class action lawsuits that could further erode market trust in the company.
FRMI
$8.88+Infinity%1D
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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.
