By Colin Kellaher

Shares of Berkshire Grey Inc. jumped more than 25% in premarket trading Tuesday after the provider of AI-enabled robotic solutions inked an expansion of its relationship with FedEx Corp. that includes warrants for the package-delivery giant to take a stake in the company.

Berkshire Grey said it entered into an agreement with FedEx for new development activities that would provide broader AI robotic-automation capabilities to help improve the safety and efficiency of FedEx package-handling operations around the world.

Berkshire Grey said the companies also expect to execute a master system purchase agreement this year that will streamline and expedite the procurement process for its solutions across all FedEx operating companies globally.

Bedford, Mass.-based Berkshire Grey said it agreed to issue to FedEx a warrant to buy up to nearly 25.3 million shares at $1.67 apiece. The warrant vests incrementally and is subject to certain levels of ordering of and payment for Berkshire Grey's goods and services by FedEx.

Berkshire Grey currently has about 227 million shares outstanding.

Berkshire Grey shares, which closed Monday at $1.78, were recently up 26%, to $2.25, in premarket trading.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

August 02, 2022 09:12 ET (13:12 GMT)

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