Plug Power Announces Potential Stock Sale Amidst Ongoing Financial Challenges

Plug Power Inc., a firm specializing in hydrogen fuel-cell technology, disclosed plans on Wednesday that may lead to the sale of its stock, resulting in a significant drop in its share value during after-hours trading.

Entering a Sales Agreement

The green energy company has struck an at-the-market issuance sales agreement with B. Riley Securities, which would enable the sale of up to $1 billion in common stock. This announcement comes as per a recent filing with the Securities and Exchange Commission by Plug Power.

A Year of Falling Shares

The past year has seen a dramatic decrease in the value of Plug Power's shares, which have diminished by over 80%, with an additional 16% fall in Wednesday's extended trading session.

Challenges on Multiple Fronts

Facing expanding losses, Plug Power has highlighted 'unprecedented' supply-chain difficulties along with delayed production timelines for its plants during its last earnings report in early November. Furthermore, the company issued a 'going concern' warning during that time, suggesting uncertainties about its ability to continue as a going concern.

Liquidity Pursuits

In response to its financial needs, Plug Power has acknowledged the necessity for additional capital to meet its business plan requirements, despite its current cash and liquidity position. Initially, the company sought various debt capital and project financing options.

Analyst Downgrades

The company recently experienced a downgrade by Susquehanna, underlining delays in building out PLUG's green hydrogen production facility and complications in securing external funding for growth. Susquehanna also remarked on recent Treasury guidance on production tax credits, which may not be as favorable as expected, potentially causing site changes for future production facilities.

Stock, Hydrogen, Finance