3M gains on expanded Amazon partnership and stock warrant deal
MMM•3M shares rose 3.7% premarket after the company expanded its commercial relationship with Amazon and issued a warrant allowing an Amazon subsidiary to buy up to 3.16 million 3M shares worth more than $521 million.
1. Warrant terms
The warrant allows the Amazon subsidiary to buy 3M shares at $164.89 each over seven years. About 85% of the warrant shares vest as Amazon purchases 3M optical connectivity and other data-center products, with full vesting at $6 billion in purchases; the remaining 15% vest when certain milestone-based conditions are met.
