Robinson made the announcement that the university would “pause” the donation during an emergency meeting with board members of FAMU’s fundraising foundation. “With regards to the gift and the processing of it and so forth, in terms of future processing, we’ve already decided it’s in our best interest to put that on hold,” Robinson said during a Zoom meeting with board members, per Politico. The board, as well as others within and outside of FAMU, have been skeptical since Texas-based hydroponic farmer Gregory Gerami announced during Saturday’s commencement ceremony that he was donating over $230 million in stock in his Batterson Farms Corporation; the donation would be the largest ever to an HBCU. The fundraising board, which was not informed of the deal ahead of time, requested Thursday’s meeting, while the board of trustees has requested its own meeting for next week.

This was said during the FAMU emergency foundation board meeting, which is being carried live here https://t.co/Ld6crzzuCI

— philip lewis (@Phil_Lewis_) May 9, 2024

Local CBS affiliate WCTV obtained a copy of the agreement made with the school. According to the news station, Gregory Gerami and the Isaac Batterson Family 7th Trust were donating “14 million shares of stock of intrinsic value worth at least $239,000,000,” as well as an additional $61 million over the next 10 years. The agreement does not seem to address the concerns that have been raised about Gerami’s ability to make good on the promise of such large sums. Further fueling skepticism is a report that Gerami made a pledge in 2020 to donate $95 million to Coastal Carolina University but that that deal ultimately fell apart, WCTV reported.

In a series of tweets that gained attention this week, one user explained that the type of stocked donated to FAMU “hold ‘intrinsic value’ as they are essentially self-assigned a price.” What this means is that “these shares can be created out of thin air and be stated as having X-amount of intrinsic value.” Furthermore, the value of the shares can only be converted into actual cash if the provider of those stocks agrees to buy them back, “but the owner has the option at any time of saying, ‘No, I don’t want to,” which could leave these shares worthless.

Private equity shares hold 'intrinsic value' as they are essentially self-assigned a price. So, these shares can be created out of thin air and be stated as having X-amount of intrinsic value. Problem is only the company can buy back such shares and must agree to do so.

1/x

— Brandon Charpied (@btcharpied) May 9, 2024

Without knowing whether or not Gerami and his company have the money, and the desire, to make good on their promise to FAMU, the actual value of the promised stock is unknown. More generally, much remains unclear about the current status of the pledge to FAMU or the future of the donation.