Plug Power Announces $1B Stock Sale, Shares Plunge to Four-Year Low
The hydrogen and fuel-cell energy company faces growth headwinds as it struggles to fund its operations.
- Plug Power Inc. has announced plans to sell up to $1 billion in stock, causing its shares to plunge to a four-year low.
- The company has entered into an at-market issuance sales agreement with B. Riley Securities, with the sale to be made from time to time.
- The proceeds from the sale are intended for working capital, capex, and general purposes, with the possibility of also going towards acquiring or investing in businesses, products, and technologies.
- Analysts predict the announcement will further pressure the stock, which has been struggling due to multiple growth headwinds.
- Plug Power has previously issued a 'going concern' warning, indicating it may not have the ability to fund its operations on its own.