Fermi (FRMI) Soars 8% After Raising $500 Million in Fresh Funds

FRMI -2.73% SMEGF +0.52%

We recently published 10 Stocks Delivering Massive Returns. Fermi Inc. (NASDAQ:FRMI) was one of the best performers on Tuesday.

Fermi extended its winning streak to a third day on Tuesday, surging 8.17 percent to finish at $9.40 apiece as investors cheered its successful raising of $500 million in fresh funds through debt.

In a statement, Fermi Inc. (NASDAQ:FRMI) said that it was able to secure the funds through a loan with MUFG Bank Ltd., one of the 10 largest financial groups globally. The loan was made in partnership with Texas Tech University System.

Fermi Inc. (NASDAQ:FRMI) said that proceeds from the offer will be used to support the development of its 11-gigawatt energy campus called Project Matador, with the company targeting to deliver an initial 2.3 GW of power.

A huge chunk will be used for the acquisition of three F-class gas turbines from Siemens Energy, while the balance will be allocated for the repayment of existing loans, as well as the delivery, completion, and deployment of additional turbines within its fleet within the first half of the year.

“This financing puts real muscle behind our strategy—securing long-lead equipment early, staying ahead of the market, and executing with certainty,” said Fermi Inc. (NASDAQ:FRMI) CEO Toby Neugebauer.

”We’re doing what most people said was unthinkable, and we’re doing it at Fermi speed,” he noted.

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READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.