Velodyne issues warrant for 39.6 million shares to Amazon subsidiary

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February 7, 2022 5:21 PM EST

FILE PHOTO: A Velodyne LiDAR sensor is seen mounted on a self-driving vehicle during a self-racing cars event at Thunderhill Raceway in Willows, California, U.S., April 1, 2017. REUTERS/Stephen Lam

(Reuters) - A subsidiary of Amazon.com Inc has secured a warrant to acquire 39.6 million shares in Velodyne Lidar Inc, the sensor maker said on Monday, more than doubling its share price in after-market trade.

Shares were up 88% at $7.09, as of 16:35 ET, after gaining as much as 127%.

Velodyne had lost about 80% in value in 2021 amid internal conflict with management as well as the resignation of its former chief executive Anand Gopalan in July.

According to the deal, Amazon.com NV Investment Holdings, a wholly-owned subsidiary of Amazon, can exercise the warrant on or before Feb. 4, 2030 at $4.18 per share. Velodyne shares closed Monday at $3.77.

The warrant shares will vest over time based on "discretionary payments" to Velodyne by Amazon of up to $200 million. According to the terms of the deal, Amazon can appoint a board observer when its shareholding crosses 12.3 million shares.

(Reporting by Yuvraj Malik and Eva Mathews in Bengaluru; Editing by Krishna Chandra Eluri)


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