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Plug Power Inc. said Wednesday it could start to sell stock, and its shares were tumbling in late trading.
The alternative-energy company has entered into an at-the-market issuance sales agreement with B. Riley Securities that will allow it to sell up to $1 billion in common stock, Plug Power
PLUG,
said in an afternoon filing with the Securities and Exchange Commission.
Shares of the company, which provides hydrogen fuel-cell technology, have collapsed over the past year, shedding more than 80% of their value over a 12-month span. The stock was off another 16% in Wednesday’s extended session.
The company has seen its losses swell, and it called out “unprecedented” supply-chain issues alongside its last earnings in early November, while pushing out production timelines for its plants. Plug Power also issued a going-concern warning in November.
Plug Power said in its last shareholder letter that given its “existing cash and liquidity position,” as well as the requirements of its business plan, it would need to access additional capital. At the time, the company said it was “pursuing a number of debt capital and project financing solutions.”
Susquehanna downgraded the stock earlier this month, calling out “delays related to both PLUG’s green hydrogen production facility buildout and securing external funding sources to finance its growth plans.”
“Additionally, the recent Treasury guidance on production tax credits was less advantageous than expected and could cause PLUG to shift locations on future production facilities,” analyst Biju Perincheril wrote in a note to clients. “While we like the company’s end-to-end solutions for the hydrogen ecosystem, we move to the sidelines until there is more clarity on the financing front and more progress on the gross-margin front.”
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