Fermi shares fall as subsidiary's contract with TensorWave expires
Fermi Inc on Tuesday announced that a contract of its subsidiary expired over the weekend without extension.
The Texas-based company said the data centre lease & services agreement between its subsidiary Fermi Campus 1 LLC and TensorWave Tex1 LLC expired on Saturday without extension.
TensorWave Tex1 is a subsidiary of artificial intelligence cloud provider TensorWave Inc.
Fermi Chief Executive Officer Lee McIntire said: "Both Fermi and TensorWave remain committed to this lease, and we are continuing to work through the remaining conditions prior to close. We expect to provide more information on the discussions during our earnings call next week, or sooner if appropriate."
Fermi noted that no party has exercised any right to terminate the lease, as Fermi and TensorWave continue to work together toward completing the transaction.
The deal was announced back in August, as Fermi's execution of its first binding customer lease agreement at its Project Matador campus in Texas. It covers a facility supported by 222 megawatts of total facility power once the final delivery phase commences.
Fermi in August said it expects the lease to deliver approximately USD6.5 billion in total contracted revenue over its initial 15-year term. It also noted in August that the agreement carries expansion rights for two additional data centres, and that once these are exercised, the partnership will cover over 650 MW in total.
Fermi shares dove 10% to USD2.22 each on Tuesday afternoon in London. In New York, they were 1.6% higher in pre-market trading at USD2.24.
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