3M expands Amazon relationship and issues warrant tied to $6 billion in payments
The warrant covers up to 3,162,015 shares at $164.89 each over seven years, and 85% of the shares vest as Amazon makes payments for optical connectivity and other Data Center products.
Key takeaways
- 3M Company (MMM) said in a regulatory filing on Oct. 19 that it entered an expanded strategic commercial relationship with a subsidiary of Amazon.com, Inc. 3M issued the subsidiary a warrant to buy up to 3,162,015 shares at $164.89 each over seven years. Full vesting depends on $6 billion in cumulative Amazon payments for data center products.
3M Company (MMM) said Monday it entered an expanded strategic commercial relationship with a wholly-owned subsidiary of Amazon.com, Inc. (Amazon), and issued a warrant to another wholly-owned Amazon subsidiary, a regulatory filing showed.
The warrant covers up to 3,162,015 shares of 3M common stock over a seven-year period, at a purchase price of $164.89 per share.
Vesting is tied to Amazon's payments. 85% of the warrant shares will vest subject to payments from Amazon for optical connectivity and other Data Center products.
Full vesting occurs once cumulative payments reach $6 billion.
The remaining warrant shares vest subject to event-based milestones. The filing does not describe those milestones.
The company disclosed the arrangement under Regulation FD, or Fair Disclosure, the SEC rule governing how companies share material information with investors.
The filing does not give an expected revenue figure for the relationship, and it includes no comment from an executive.