--- title: "Fermi founder sold $14 million of FRMI with no trading plan, weeks after saying he had sold none" description: "Fermi founder Toby Neugebauer and his family trust sold about $14 million of stock on October 13 and 14 with no trading plan in place, four weeks after telling shareholders they had not sold a share since the IPO. Fermi still has to raise construction money that AMD's lease guarantee does not start covering until rent begins in early 2028." publisher: "The Inference" section: "Markets" published: 2026-10-16T01:43:40.850Z modified: 2026-10-16T01:43:40.850Z canonical: https://theinference.org/article/fermi-founder-sold-14-million-of-frmi-with-no-trading-plan-weeks-after-saying-he-had-sold-none language: en keywords: "Fermi, Insider Selling, AMD, Markets, AI Infrastructure, Corporate Governance" --- # Fermi founder sold $14 million of FRMI with no trading plan, weeks after saying he had sold none > Fermi founder Toby Neugebauer and his family trust sold about $14 million of stock on October 13 and 14 with no trading plan in place, four weeks after telling shareholders they had not sold a share since the IPO. Fermi still has to raise construction money that AMD's lease guarantee does not start covering until rent begins in early 2028. ## The first sale since the IPO Toby Neugebauer, the Dallas investor whose Vicksburg Investments Management and family trust hold about 22 percent of [Fermi Inc.](https://theinference.org/markets/companies/fermi-inc) (Nasdaq: FRMI), sold 4,047,200 shares of the AI power developer on October 13 and 14 for about $14 million, per [the Form 4, the SEC filing insiders must make when they trade, filed October 15](https://www.sec.gov/Archives/edgar/data/2071778/000090514826004482/0000905148-26-004482-index.htm) [1][2]. The board removed him as chief executive on April 17, and he has since [sued three of its directors](https://www.msn.com/en-us/news/other/frmi-stock-climbs-overnight-former-ceo-sues-three-directors-over-power-grab-allegations/ar-AA2cIMg5) [2][6]. His own [September 11 release](https://www.nasdaq.com/press-release/fermi-founder-parties-file-formal-proposal-independent-strategic-review-extraordinary) told shareholders that "Toby and Melissa Neugebauer have not sold a share since Fermi's IPO" [2]. The filing dates the break in that pledge to the day. He sold 2,750,000 shares at a $3.7333 weighted average on October 13, then 1,297,200 more at $3.1524 on October 14, and the form states no Rule 10b5-1 trading plan applies, so the sales were not scheduled in advance [1]. ## His sale prices bracket the AMD pop October 13 was the day Fermi announced [AMD](https://theinference.org/markets/companies/amd) had signed [a credit support agreement](https://www.usatoday.com/press-release/story/49921/fermi-signs-credit-support-agreement-with-amd-and-announces-partnership/) behind its 222 megawatt lease to TensorWave, the data-center operator leasing the capacity at Project Matador, its Texas Panhandle campus; the stock [jumped 16 percent](https://finance.yahoo.com/technology/ai/articles/fermi-soars-16-amd-backs-155724371.html), and Neugebauer sold 2.75 million shares into the rally at $3.69 to $3.845 [1][3][5]. His second tranche, the next day, went for $3.09 to $3.215, an average 15.6 percent below the first; the AMD pop was gone in a day [1][5]. ## AMD backs the rent, not the construction AMD, rated A at S&P, stands behind the lease only once construction is finished and rent begins on the final delivery phase, with TensorWave occupying from late 2027 and delivery completing in early 2028 [4]. The lease has not closed; the deadline is October 31, and [conditions include project financing adequate to pay for construction](https://finance.yahoo.com/technology/articles/fermi-details-6-5-billion-180452764.html), which comes to roughly $2.2 billion to $2.8 billion for phase one on the per-megawatt costs Fermi discloses [4]. Fermi had booked no revenue as of June 30, and its balance sheet shows the squeeze [4]. ![Aerial view of the Project Matador construction site in the Texas Panhandle, with earthworks, foundations and power equipment spread across cleared scrubland](https://storage.googleapis.com/theinference-public/img/c6805fe1819b4097.jpg) *Project Matador under construction in January 2026. Phase one needs roughly $2.2 billion to $2.8 billion of project financing before the TensorWave lease can close. (Fermi Inc. via X)* *Chart: **Cash has fallen 78% in two quarters while debt more than quadrupled, with no revenue yet** Line chart of Fermi Inc.'s quarterly cash and debt balances from Q2 2025 to Q2 2026, cash falling from a $409 million peak while debt climbs to $576 million* *Quarter-end cash and total debt, USD millions, from Fermi Inc.'s SEC filings; revenue was zero in every quarter shown. [7]* ## He still holds 97 percent of his stake After the sales he still holds 142,468,835 shares: 91.6 million through Vicksburg, 43.4 million through the Melissa A. Neugebauer 2020 Trust and 7.5 million directly, about $449 million at his last sale price, with under 3 percent of the stake gone [1]. The same filing corrects his founding count, adjusting the Form 3, the initial ownership filing, from September 2025 to 40,156,376 shares plus a 4.5 million share transfer between his entities that December [1]. *Chart: **Vicksburg holds 91.6 million of his remaining 142.5 million shares** Pie chart of Toby Neugebauer's remaining 142.5 million Fermi shares: 91.6 million held through Vicksburg Investments Management, 43.4 million through the Melissa A. Neugebauer 2020 Trust and 7.5 million directly* *Toby Neugebauer's remaining Fermi Inc. stake by holding entity, in millions of shares, after the October 13 and 14 sales, per the Form 4 filed October 15, 2026. [1]* ## Three deadlines land inside two weeks His September release flagged a donor advised fund, a charitable account that pays out to nonprofits, soon fulfilling commitments made in Fermi's name in Amarillo; the Form 4 itself gives no reason for the sale [1][2]. The October 30 annual meeting votes on his proposal for an independent review of a sale or recapitalization [2]. The lease closes or slips on October 31 [4]. Third-quarter results land November 12 [5]. AMD's guarantee of that rent starts only in early 2028 [4]. The construction bill arrives first, and it is addressed to everyone else who owns the stock. ## Takeaway Toby Neugebauer sold 4 million FRMI shares for $14 million with no trading plan, selling into the AMD pop before it faded, while Fermi still has to raise $2.2 billion to $2.8 billion for construction before AMD's rent guarantee starts in early 2028. ## Sources 1. [SEC EDGAR, Form 4, Fermi Inc. (FRMI), Toby R. Neugebauer and Melissa A. Neugebauer 2020 Trust, filed 15 October 2026](https://www.sec.gov/Archives/edgar/data/2071778/000090514826004482/0000905148-26-004482-index.htm) 2. [PRNewswire via Nasdaq, "Fermi Founder Parties File Formal Proposal for Independent Strategic Review of Extraordinary Transactions," 11 September 2026](https://www.nasdaq.com/press-release/fermi-founder-parties-file-formal-proposal-independent-strategic-review-extraordinary) 3. [Fermi Inc. press release via ACCESS Newswire / USA TODAY, "Fermi Signs Credit Support Agreement with AMD and Announces Partnership," 13 October 2026](https://www.usatoday.com/press-release/story/49921/fermi-signs-credit-support-agreement-with-amd-and-announces-partnership/) 4. [William Foxley, Blockspace via Yahoo Finance, "Fermi details $6.5 billion, 15-year TensorWave lease for 222 MW at Project Matador," 15 October 2026](https://finance.yahoo.com/technology/articles/fermi-details-6-5-billion-180452764.html) 5. [Roxanna Maglangit, Yahoo Finance, "Fermi Soars 16% as AMD Backs Its 222 MW Texas AI Lease," 13 October 2026](https://finance.yahoo.com/technology/ai/articles/fermi-soars-16-amd-backs-155724371.html) 6. [Aashika Suresh, Stocktwits via MSN, "FRMI stock climbs overnight: Former CEO sues three directors over power grab allegations," 21 September 2026](https://www.msn.com/en-us/news/other/frmi-stock-climbs-overnight-former-ceo-sues-three-directors-over-power-grab-allegations/ar-AA2cIMg5) 7. [Fermi Inc., quarterly figures from its SEC filings, retrieved 15 October 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0002071778) --- Fermi founder sold $14 million of FRMI with no trading plan, weeks after saying he had sold none — The Inference. Canonical: https://theinference.org/article/fermi-founder-sold-14-million-of-frmi-with-no-trading-plan-weeks-after-saying-he-had-sold-none