Plug Power plans USD-1bn stock offering to beef up capital

US hydrogen technology company Plug Power Inc (NASDAQ:PLUG) on Wednesday announced plans to offer for sale up to USD 1 billion (EUR 919.1m) worth of its common stock in a bid to enhance its capital.

The company has signed an at-the-market issuance sales agreement with B. Riley Securities that will allow it to carry out the proposed sale. Its filing with the US Securities and Exchange Commission (SEC) shows that the shares may be sold “from time to time.”

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The news sent Plug Power’s stock down on Wednesday night, with the shares closing down 10.03% at USD 2.73 and plunging further in pre-market trading on January 18. At market close on Wednesday, the company’s valuation was USD 1.66 billion.

The price of Plug Power’s shares has been going downwards in the past few months after the company saw its loss swell and reach a total of USD 726.4 million (EUR 680m) for the first nine months of 2023 due to the “unprecedented supply challenges in the hydrogen network in North America.”

Plug Power is working to establish its own green hydrogen production network in addition to selling fuel cell systems, fuelling stations and electrolysers. The hydrogen technology company’s SEC filing shows that the proposed share offering is mostly aimed at securing funds for working capital, capital expenditures and general corporate purposes. A portion of the raised funds could go for investment in new businesses, products and technologies.

(USD 1.0 = EUR 0.919)