Caddis Capital backs Fermi board amid leadership dispute

Caddis Capital, the second-largest shareholder in Fermi Inc. (NASDAQ: FRMI) (LSE: FRMI) with approximately 9.3% ownership, issued a statement supporting the company's board of directors and management team while opposing efforts by former CEO Toby Neugebauer to regain control.

The investment firm backed Fermi's recent decision to remove Neugebauer as CEO and accept the resignation of CFO Miles Everson. Griffin Perry, managing partner of Caddis Capital, said the firm supports appointing seasoned executives with operational expertise and opposes what he characterized as Neugebauer's pursuit of a hasty sale.

"A sale of the Company at such a depressed price would deprive shareholders of significant value," Perry stated in the release.

Caddis Capital reduced its stake to just under 10% from a higher level, which Perry described as a strategic move to reduce regulatory burden and preserve privacy of the firm's structure. The company previously nominated former Texas Governor Rick Perry to Fermi's board.

The firm indicated it believes Fermi's current market valuation does not reflect the company's intrinsic value or underlying assets. Caddis Capital stated it remains engaged with Fermi's board and management on strategic partnerships and capital allocation practices.

The statement comes amid an apparent corporate governance dispute involving the former CEO, who was described as having been "fired for cause." Fermi operates in what Caddis Capital characterized as a strategically important sector for Texas and the United States.

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