A Velodyne LiDAR sensor is seen mounted on a self-driving car throughout a self-racing automobiles occasion at Thunderhill Raceway in Willows, California, U.S., April 1, 2017. REUTERS/Stephen Lam

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Feb 7 (Reuters) – A subsidiary of Amazon.com Inc has secured a warrant to amass 39.6 million shares in Velodyne Lidar Inc (VLDR.O), the sensor maker mentioned on Monday, greater than doubling its share value in after-market commerce.

Shares have been up 88% at $7.09, as of 16:35 ET, after gaining as a lot as 127%.

Velodyne had misplaced about 80% in worth in 2021 amid inner battle with administration in addition to the resignation of its former chief government Anand Gopalan in July.

In response to the deal, Amazon.com NV Funding Holdings, a wholly-owned subsidiary of Amazon, can train the warrant on or earlier than Feb. 4, 2030 at $4.18 per share. Velodyne shares closed Monday at $3.77.

The warrant shares will vest over time based mostly on “discretionary funds” to Velodyne by Amazon of as much as $200 million. In response to the phrases of the deal, Amazon can appoint a board observer when its shareholding crosses 12.3 million shares.

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Reporting by Yuvraj Malik and Eva Mathews in Bengaluru; Enhancing by Krishna Chandra Eluri

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