Fermi Faces Investor Probes After $150 Million Tenant Deal Collapses

Shareholder firms are examining whether the newly public company misled investors about Project Matador commitments.

Overview

Fermi said the prospective first tenant terminated the Advance in Aid of Construction Agreement on December 11 and disclosed the news on December 12.
Shares fell 33.8% to close at $10.09 on December 12, more than 50% below the $21 IPO price set in early October.
The canceled agreement would have advanced $150 million to help fund construction of Project Matador, described as an AI-focused energy and data campus linked to Texas Tech University.
Hagens Berman, Scott+Scott, and Kirby McInerney announced investigations into potential securities-law violations related to the company’s statements and disclosures.
In November, Fermi told investors it had executed the $150 million AICA with a “very creditworthy” tenant and said it already had the construction contract, and the company has not given a reason for the tenant’s exit.