Fermi Inc. ( FRMI ) shares are volatile Tuesday after the company announced its co-founder called for a formal sale process.

Fermi stock is building positive momentum. Why is FRMI stock advancing?

Co-Founder Pushes for Strategic Sale

Toby Neugebauer, co-founder and the largest shareholder of Fermi, reiterated his bullish stance on Project Matador and said he supports initiating an immediate sale process to maximize value for shareholders.

Neugebauer, who was recently removed as CEO without cause, indicated he would support a process led by an independent investment bank to sell the company to a third party, adding that his priority is generating returns for shareholders.

Neugebauer and related parties, including family members and former executives, collectively own approximately 40% of the company's shares. The former Fermi CEO noted that he has not sold any shares since the company's IPO, aside from shares withheld for taxes.

Fermi Shares Edge Higher

FRMI Price Action: At the time of writing, Fermi shares are trading 4.07% higher at $5.62, according to data from Benzinga Pro.

This illustration was generated using artificial intelligence via Midjourney.