Plug Power (NASDAQ: PLUG) shares continued to fall in early Monday trading, following a nearly 14% drop on Friday. The decline came after the company announced its plan to sell additional shares to the public, aiming to raise $200 million in proceeds.
Plug Power revealed plans to sell approximately 79 million shares at $2.54 each, below Thursday’s closing price of $2.92. The offering will close on July 22.
Under the deal, underwriters can purchase an additional 11.8 million shares within 30 days. The hydrogen fuel cell producer plans to use the proceeds from this offering for general corporate purposes. However, such offerings can sometimes raise investor concerns since they can dilute earnings per share.
Plug Power announced the offering two months after receiving 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 have dropped more than 40% year-to-date. However, the stock remains above its 52-week lows.
Analyst firms have provided mixed reviews of the stock. Canaccord Genuity and Truist Securities have maintained a Hold rating, while BMO Capital has issued an Underperform rating. UBS has kept a neutral stance but has lowered its stock target.
Plug Power (NASDAQ: PLUG) Stock Movement
As of 09:53 a.m. (Eastern Time) Monday, PLUG stock traded at $2.4826, marking a 1.28% decrease compared to the previous trading session.
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