3M (MMM.US) issues 3.16 million warrants to Amazon to expand data center product cooperation

The Zhitong Finance App learned that 3M (MMM.US) disclosed that it has reached an expanded strategic commercial agreement with Amazon (AMZN.US) to become a supplier of Amazon optical connectivity and other data center products. According to an 8-K filing, 3M said the company has issued warrants allowing Amazon to buy up to 3,162,015 shares of common stock at $164.89 per share over seven years as part of the deal. After the news was announced, 3M's stock price rose 5.6% as of press release.

According to the warrant structure, 85% of the shares will be instalments based on Amazon's cumulative payments for data center products, and all shares will be vested when the cumulative payment reaches $6 billion; the ownership of the remaining shares will depend on event-based milestones, and the document does not disclose details.

According to reports, Amazon has also previously obtained stock warrants from suppliers such as Generac and Qualcomm, but based on the number of shares in circulation, 3M's shareholding ratio corresponding to this deal is less than 1%.

Additionally, 3M announced a partnership with Taiwanese company Genius Electronic Optical (Genius Electronic Optical) to jointly develop and manufacture Expanded Beam Optical (Expanded Beam Optical) solutions for data center interconnection applications. The company said it plans to acquire about 4.7% of Yujing Optoelectronics's common shares by subscribing to newly issued shares in private equity; financial terms were not disclosed.