Fermi's largest shareholder Toby Neugebauer urges immediate sale, attacks board

what happened

Toby Neugebauer, Fermi's co-founder and biggest shareholder, is pressing the company to start a sale right away while it negotiates a tenant agreement, Seeking Alpha reports. He faulted the board for how it has handled strategic options, financing and governance.

He warned that shareholders would resist any recapitalization that erases their equity. Neugebauer said the stock has fallen more than 80% since he halted his proxy campaign in July, when he had backed exploring a sale or strategic partnership. He cited indicative enterprise valuations of $10 billion to $20 billion.

Last month, CEO Lee McIntire wrote to shareholders outlining a three-part capital plan for Project Matador, the energy and AI facility in Texas. The company, a data center and power startup set up with former Energy Secretary Rick Perry, went public in a high-profile IPO last year and is now trying to recover.

why it matters

The dispute adds uncertainty to a young AI-power company that is already recovering from a steep slide. A sale could support the valuation, while a recapitalization that wipes out equity would hit existing holders hard. It also highlights governance risks at newly listed infrastructure firms.

market impact

Fermi shares: dispute with largest holder adds uncertainty over the company's future

• ↔Fermi shares mixed — a sale could lift value, but a recapitalization wiping out equity would hurt holders

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