:max_bytes(150000):strip_icc()/GettyImages-2159852498-319284a220064202b71308110e540227.jpg "Plug Power Is Selling Stock. Its Shares Are Falling")
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2159852498-319284a220064202b71308110e540227.jpg)
Key Takeaways
- Plug Power said it would offer roughly 79 million shares at a price of $2.54 each, which would generate gross proceeds of $200 million.
- The price was below Thursday’s close, and the company’s shares fell Friday.
- The company didn’t specify a use for the proceeds.
Plug Power (PLUG) stock tumbled after the company said it would sell more shares to the public, which it expects to generate $200 million in proceeds.
The hydrogen fuel cell producer said it would sell nearly 79 million shares at $2.54 each, below Thursday’s close of $2.92. Shares of Plug Power dropped 15% to $2.46 Friday morning.
The offering is expected to close on July 22, the company said. As part of the deal, underwriters have the option to buy another 11.8 million shares for 30 days. Plug Power said it plans to use the proceeds for general corporate purposes. Investors are sometimes wary of such offerings since they can dilute earnings per share.
The offering comes two months after Plug Power announced the receipt of a conditional U.S. government loan guarantee valued at up to $1.66 billion to build and develop up to six green hydrogen production facilities.
Plug Power’s shares are down more than 40% this year, though they’re holding above 52-week lows.