Plug Power Inc. Announces Pricing of Public Offering of Common Stock

Rhea-AI Summary

Plug Power Inc. (NASDAQ: PLUG) has announced the pricing of its public offering of 78,740,157 shares of common stock at $2.54 per share. The offering, expected to close around July 22, 2024, aims to raise approximately $200 million in gross proceeds. Underwriters have a 30-day option to purchase up to an additional 11,811,023 shares. Plug Power plans to use the net proceeds for general corporate purposes. Morgan Stanley is the sole book-running manager, with Canaccord Genuity, Oppenheimer & Co., Roth Capital Partners, BTIG, and Craig-Hallum acting as co-managers. The offering is made pursuant to an automatic shelf registration statement previously filed with the SEC.

Positive

• Successful pricing of public offering, potentially raising $200 million
• Underwriters granted option to purchase additional shares, potentially increasing proceeds
• Funds to be used for general corporate purposes, providing financial flexibility

Negative

• Significant dilution of existing shareholders due to large number of new shares issued
• Low offering price of $2.54 per share may indicate weak market sentiment
• Potential downward pressure on stock price due to increased supply of shares

Insights

Financial Analyst

The recent announcement by Plug Power Inc. regarding their public offering of common stock is noteworthy for investors. The company intends to raise approximately $200 million before expenses, which will bolster their financial position. This move is particularly relevant in the context of their role in the emerging green hydrogen economy.

It is important to understand that issuing new shares can lead to dilution of existing shares. This means that the value of each existing share may decrease because the company's earnings are now spread over a larger number of shares. The offering price of $2.54 per share is below the recent trading prices, which might signal that the management anticipates some short-term volatility or has a pressing need for capital.

In the short-term, investors might see a drop in share price due to the dilution effect. However, the influx of capital can be positive in the long-term if Plug Power deploys these funds effectively, such as expanding their operations, investing in new technologies, or reducing debt. This offering being underwritten by reputable financial institutions like Morgan Stanley suggests a level of confidence in the company's future prospects.

Retail investors should weigh the immediate negative impact of dilution against the potential long-term benefits of the company's enhanced financial flexibility. Understanding the specifics of how the raised funds will be used is key to assessing the full impact on the stock's future performance.

Market Research Analyst

Plug Power's move to initiate a public offering aligns with their strategic initiatives to secure a prominent position in the green hydrogen market. The market for green hydrogen is projected to grow significantly as industries and governments push for decarbonization. By raising $200 million, Plug Power aims to capitalize on these trends, potentially increasing their market share and expanding their technological capabilities.

Investors should consider the broader market context: the green hydrogen sector is expected to see substantial growth, driven by policies favoring renewable energy and reductions in carbon emissions. This capital raise could enable Plug Power to accelerate their development projects or enter new markets more aggressively.

However, the success of these plans is contingent upon effective use of the funds and the company's ability to stay ahead of competitors. The entry of new players and technological advancements in the sector could affect Plug Power's market position. Investors should keep an eye on sector-specific developments and Plug Power’s strategic moves post-funding to gauge the long-term impact of this offering.

Overall, while the public offering may initially impact share prices negatively due to dilution, it represents a strategic approach to leverage the growing demand for green hydrogen solutions.

LATHAM, N.Y., July 19, 2024 (GLOBE NEWSWIRE) -- Plug Power Inc. (“Plug Power”) (NASDAQ: PLUG), a global leader in comprehensive hydrogen solutions for the green hydrogen economy, today announced the pricing of its previously announced underwritten public offering of 78,740,157 shares of its common stock at a price to the public of $2.54 per share. The offering is expected to close on or about July 22, 2024, subject to market and other customary closing conditions. In connection with the offering, Plug Power has granted the underwriters a 30-day option to purchase up to an additional 11,811,023 shares of common stock at the public offering price, less the underwriting discount.

The gross proceeds to Plug Power from the offering, before deducting the underwriting discount and other offering expenses payable by Plug Power, are expected to be approximately $200 million. Plug Power intends to use the net proceeds from the offering for general corporate purposes.

Morgan Stanley is acting as the sole book-running manager for the offering. Canaccord Genuity, Oppenheimer & Co., Roth Capital Partners, BTIG and Craig-Hallum are acting as co-managers for the offering. The securities described are being offered by Plug Power pursuant to an automatic shelf registration statement on Form S-3 that was previously filed with the Securities and Exchange Commission (the “SEC”) and declared effective by the SEC. A preliminary prospectus supplement related to the offering has been filed with the SEC. Before you invest, you should read the preliminary prospectus supplement and the accompanying prospectus in that registration statement and other documents filed with the SEC for more information about Plug Power and this offering. You may obtain these documents free of charge by visiting the SEC’s website at www.sec.gov. Copies of the preliminary prospectus and the accompanying prospectus relating to the securities being offered may also be obtained from Morgan Stanley at Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014.

This press release does not and shall not constitute an offer to sell or a solicitation of an offer to buy any shares of Plug Power’s common stock, nor shall there be any offer, solicitation or sale of such shares, in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Plug Power

Plug Power is building an end-to-end green hydrogen ecosystem, from production, storage, and delivery to energy generation, to help its customers meet their business goals and decarbonize the economy. In creating the first commercially viable market for hydrogen fuel cell technology, the company has deployed more than 69,000 fuel cell systems and over 250 fueling stations, more than anyone else in the world, and is the largest buyer of liquid hydrogen.

With plans to operate a green hydrogen highway across North America and Europe, Plug Power built a state-of-the-art Gigafactory to produce electrolyzers and fuel cells and is developing multiple green hydrogen production plants targeting commercial operation by year-end 2028. Plug Power delivers its green hydrogen solutions directly to its customers and through joint venture partners into multiple environments, including material handling, e-mobility, power generation, and industrial applications.

Cautionary Language Concerning Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this press release, including statements regarding the offering, the anticipated use of the net proceeds from the offering and the timing of the closing of the offering, are forward-looking statements. These forward-looking statements are made as of the date they were first issued and are based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Plug Power’s control. Plug Power’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including, but not limited to, the risks related to the offering of the shares and uncertainties related to market conditions. These and other potential risks and uncertainties that could cause actual results to differ from the results predicted are more fully detailed in Plug Power’s filings and reports with the SEC, including the Annual Report on Form 10-K for the year ended December 31, 2023, the Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, as well as other filings and reports that are filed by Plug Power from time to time with the SEC. Plug Power anticipates that subsequent events and developments will cause its views to change and you should consider these factors in evaluating the forward-looking statements and not place undue reliance on such statements. Plug Power undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing Plug Power’s views as of any date subsequent to the date of this press release.

Media Contact

Fatimah Nouilati
Allison
plugPR@allisonpr.com

FAQ

How many shares of common stock is Plug Power (PLUG) offering in its public offering?

Plug Power (PLUG) is offering 78,740,157 shares of common stock in its public offering, with an additional 30-day option for underwriters to purchase up to 11,811,023 more shares.

What is the price per share for Plug Power's (PLUG) public offering announced on July 19, 2024?

The price per share for Plug Power's (PLUG) public offering announced on July 19, 2024, is $2.54.

How much does Plug Power (PLUG) expect to raise from its July 2024 public offering?

Plug Power (PLUG) expects to raise approximately $200 million in gross proceeds from its July 2024 public offering.

When is the expected closing date for Plug Power's (PLUG) public offering announced in July 2024?

The expected closing date for Plug Power's (PLUG) public offering is on or about July 22, 2024, subject to market and other customary closing conditions.

Who is the sole book-running manager for Plug Power's (PLUG) July 2024 public offering?

Morgan Stanley is acting as the sole book-running manager for Plug Power's (PLUG) July 2024 public offering.