By Colin Kellaher
Shares of SpartanNash Co. rose nearly 35% Friday after the grocery distributor issued a warrant to buy about 5.44 million shares to Amazon.com Inc. in connection with its commercial agreement with the e-commerce giant.
SpartanNash said the warrant carries an exercise price of $17.7257 a share, and that it is already vested for about 1.09 million shares.
In a filing with the U.S. Securities and Exchange Commission, the Grand Rapids, Mich., company said Amazon's right to buy shares under the warrant expires in October 2027.
SpartanNash, which in 2016 inked a deal to supply Amazon's distribution centers with grocery products, currently has about 35.8 million shares outstanding.
Full exercise of the warrant by Amazon would make it SpartanNash's largest shareholder, according to data from FactSet. BlackRock Fund Advisors is currently the top holder with 5.25 million shares, or a roughly 14.6% stake.
SpartanNash shares, which closed Thursday at $17.02, were recently up 34.8% at $22.94.
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(END) Dow Jones Newswires