On December 27, 2024, Jabil Inc. (JBL, Financial) announced the issuance of a warrant to Amazon.com NV Investment Holdings LLC, allowing the acquisition of up to 1,158,539 ordinary shares of Jabil at an initial exercise price of $137.7671 per share. This price reflects the volume-weighted average price (VWAP) over the preceding 30 trading days. The warrant, which permits cashless exercise, is set to expire on December 27, 2031.
The warrant shares are subject to vesting based on payments for purchased products and services throughout the warrant term. Notably, a portion of these shares has already vested upon issuance. In the event of an acquisition transaction, as defined in the warrant, the unvested portion will vest fully, subject to certain exceptions. Until exercised, the warrant does not grant the holder any voting rights or other common stockholder privileges.
Both the exercise price and the number of warrant shares are subject to customary anti-dilution adjustments. Importantly, the issuance of the warrant and the warrant shares has not been registered under the Securities Act of 1933 or any state securities law. Jabil Inc. believes the transaction is exempt from registration under Section 4(a)(2) of the Securities Act, with customary legends affixed to the warrant and the warrant shares.
This strategic move signifies a strengthening of the partnership between Jabil Inc. and Amazon, potentially enhancing Jabil's market position and operational capabilities.
Should you invest in Jabil Inc (JBL, Financial) right now? Before you do it, it’s important to understand the business profitability and stock valuations, and find out what the warning signs are about. See the in-depth Jabil Inc (JBL) stock research here.
