Toby Neugebauer, cofounder and largest shareholder of Fermi, has announced the suspension of his proxy fight. The move comes as Neugebauer had proposed adding new members to the Fermi board who would support his plan to sell the company.

Background

Neugebauer was terminated as CEO of Fermi earlier this year and has since been engaged in a dispute with the company. He had argued that selling the company was the best way to preserve stockholder value. However, Fermi has disputed this claim, stating that Neugebauer’s actions were motivated by a desire to make a quick profit for himself.

Neugebauer had also sued the company after his termination, but the case was delayed when the judge recused himself. With a new judge now assigned to the case, Neugebauer has stated that the timeline no longer allows for the seating of new directors who can oversee a dual-track process of looking for customers and potential buyers for the company.

Impact on Texas Tech Project

The suspension of the proxy fight may have implications for Fermi’s planned data center project with Texas Tech. The project, which is set to be one of the largest advanced energy and data campuses in the world, is still in the planning stages. Fermi has leased a 99-year property from Texas Tech for the project, which is expected to have up to 17 gigawatts of power, some of which will come from nuclear sources.

Neugebauer has stated that he is still committed to the success of the company and believes that his plan is the best way to protect investors. However, the future of the project remains uncertain, and it is unclear how the suspension of the proxy fight will affect its development.

Original reporting: Lubbock Lights — read the source article.