Plug Power Shares Plummet Amid Going Concern Doubts and Liquidity Issues

Hydrogen fuel cell maker mentions "going concern" in regulatory filing, shares dip almost 30% pre-market, after an quarterly earnings overshadowed by severe liquidity concerns and force majeure events disrupting the liquid hydrogen market.

• Shares of Plug Power (PLUG.O) plunged nearly 30% in premarket trading due to the company raising concerns over its ability to continue operating amid severe liquidity issues and disruptions in the liquid hydrogen market.
• The company anticipates that its current cash and available securities will be insufficient to fund operations for the next year, suggesting it may need to raise additional capital.
• Plug Power is exploring several debt capital and project-financing solutions, including corporate debt and a loan program from the U.S. Department of Energy, to manage its liquidity crisis.
• The company has also reported a wider loss for Q3 2023 than expected, standing at $3.8 billion at the end of the September quarter due to negative cash flows and net losses.
• Analyst Sangita Jain of KeyBanc Capital Markets anticipates that until liquidity-enhancing measures are announced, shares are likely to remain under pressure. The stock is currently on track to open at its lowest level since June 2020.

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