A filing with the U.S. Securities and Exchange Commission (SEC) contained details of a deal with Amazon. In this filing, it’s revealed that SpartanNash made a commercial agreement with the online retailer.
As a result of this agreement, SpartanNash issued warrants to Amazon.com NV Investment Holdings LLC for its shares. The offering includes warrants to acquire a total of 5,437,272 shares of SPTN stock. These warrants have an exercise price of $17.7257.
If Amazon makes use of the warrants, it would have it spending up to $96.38 million to acquire a stake in the company. It’s worth noting that this would give it a roughly 15.6% stake in SpartanNash based on its 34,852,447 outstanding shares.
According to the SEC filing, SpartanNash’s agreement with Amazon includes offering up its services to the e-commerce giant. That’s worth noting as SpartanNash is a food distributor and grocery store operator.
SpartanNash has been offering its services to Amazon for about four years now. It supplies the company with certain grocery items for its Amazon Prime Now grocery delivery service. It’s also been expanding its grocery offerings with a new store called Amazon Fresh that just opened its doors in August.
SPTn stock was up 26.9% as of Friday afternoon and is up 21.8% year-to-date as of Thursday’s close.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.