Berkshire Grey Inc. (NASD: BGRY) shares have gained 10.74% at $1.65 in Friday’s after-hours session to recover from a loss it has made in regular sessions. BGRY stock subtracted -3.87% to finish regular trading at $1.49 exchanging 0.41 million shares.
What is going on at BGRY?
With Lincoln Park Capital Fund, LLC, Berkshire Grey (BGRY) recently signed into a purchase agreement and registration rights agreement (collectively, the “Agreement”) for up to $75 million (“Lincoln Park”).
- In accordance with the provisions of the Agreement, Berkshire Grey is permitted to sell up to $75 million worth of its shares of common stock to Lincoln Park during a 36-month period, but it is not required to.
- Lincoln Park will be able to acquire any common stock at any time for a price that is set by the current market price at the time of each transaction, with no cap on how much Lincoln Park is willing to spend.
- The Agreement does not contain any warrants, derivatives, financial covenants, or business covenants.
- Lincoln Park also committed not to initiate or participate in any direct or indirect short selling or hedging of BGRY common stock.
- Lincoln Park received common shares from Berkshire Grey in exchange for agreeing to acquire the Company’s common stock under the terms of the Agreement.
- With the signing of the contract with Lincoln Park, BGRY anticipates using the profits, as they become available, for general corporate objectives, which may include investments and business deals.
- BGRY will benefit from having more financial flexibility as a result of the transaction as it continues to carry out its business plan.
A Strategic move:
Additionally recently strengthened was Berkshire Grey’s strategic partnership with FedEx Corporation (NYSE: FDX). As part of this partnership’s growth, BGRY and FedEx have agreed to additional development initiatives that will offer expanded AI robotic automation capabilities to enable FedEx package handling facilities throughout the world to operate more safely and effectively. In addition, the two parties plan to sign a master system purchase agreement in 2022, which would speed up and simplify the acquisition of Berkshire Grey solutions by all FedEx operating businesses worldwide.
What else has BGRY agreed to?
Additionally, Berkshire Grey (BGRY) granted FedEx a warrant to buy a common stock that vests gradually in exchange for fulfilling certain conditions, such as ordering and paying for BGRY AI-enabled robotic automation goods and services at any time before December 31, 2025. The warrant’s full 25 million share allotment will become exercisable upon the ordering or payment of at least $200 million in such goods and services.