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

According to news from Zhihu Finance APP, 3M (MMM.US) has disclosed that it has reached an expanded strategic commercial agreement with Amazon (AMZN.US), making it a supplier of Amazon’s optical interconnect and other data center products. According to an 8-K filing, 3M stated that the company has issued warrants allowing Amazon to purchase up to 3,162,015 shares of common stock at a price of $164.89 per share within seven years, as part of the deal. Following the announcement, as of press time, 3M’s share price has increased by 5.6%.

According to the warrant structure, 85% of the shares will vest in installments based on Amazon’s cumulative payments for data center products, with full vesting occurring when cumulative payments reach $6 billion; vesting of the remaining shares depends on event-based milestones, though the filing does not disclose specific details.

Reports indicate that Amazon has previously received warrants from suppliers such as Generac and Qualcomm, but in terms of outstanding shares, the equity stake involved in the 3M deal is less than 1%.

In addition, 3M announced a partnership with Taiwanese company Genius Electronic Optical to jointly develop and manufacture Expanded Beam Optical solutions for data center interconnect applications. The company stated that it plans to acquire approximately 4.7% of Genius Electronic Optical’s common stock through a private placement of newly issued shares; financial terms were not disclosed.