Berkshire Gray Shares Rally Premarket on Expanded FedEx Work > BGRY
By Colin Kelher
Shares of Berkshire Gray Inc. jumped more than 25% in premarket trading on Tuesday after the AI-powered robotics solutions provider signed an expansion of its relationship with FedEx Corp. which includes mandates for the parcel delivery giant to take a stake in the business. .
Berkshire Gray said it has reached an agreement with FedEx for new development activities that would provide broader robotic automation capabilities to help improve the safety and efficiency of FedEx’s package handling operations around the world.
Berkshire Gray said the companies also expect to sign a master system purchase agreement this year that will streamline and accelerate the process of sourcing its solutions across all FedEx operating companies globally.
Berkshire Gray, based in Bedford, Mass., said it agreed to issue FedEx a warrant to buy up to nearly 25.3 million shares at $1.67 apiece. The mandate vests over time and is subject to certain levels of ordering and payment of Berkshire Gray goods and services by FedEx.
Berkshire Gray currently has approximately 227 million shares outstanding.
Shares of Berkshire Grey, which closed Monday at $1.78, were recently up 26% to $2.25 in premarket trading.
Write to Colin Kellaher at [email protected]