Plug Power Announces Capital Increase of 280 Million USD- Pressure on Stock Continues

Slingerlands, USA – US-based fuel cell and hydrogen company Plug Power has announced a capital increase with a total volume of 280 million USD.

The Plug Power offering includes the issuance of 46.5 million shares and pre-financed warrants allowing the purchase of 138.9 million shares. In total, this results in the sale of 185.4 million share equivalents. To date, Plug Power has issued approximately 925 million shares.

The new shares will be offered at a price of 1.51 USD per share, and the pre-financed warrants at a price of 1.509 USD. The total gross proceeds from the offering amount to approximately 280 million USD, less underwriting fees and issuance costs.

According to Plug Power, the funds raised from the offering will be used for working capital and general corporate purposes. The offering is expected to be completed on March 20, 2025.

"The net proceeds from this offering will strengthen our financial position and help drive profitability in 2025. We are taking disciplined actions to optimize operations, improve cash flow, and focus on strategic initiatives that support sustainable growth. This funding reinforces our long-term vision and financial resilience”, said Plug Power CEO Andy Marsh.

As the fuel cell manufacturer also reports, Marsh has committed to taking 50 percent of his annual salary in company stock this year. This decision emphasizes Marsh's confidence in the current strategy and the future potential of Plug Power to dominate the hydrogen economy on a large scale, according to Plug Power.

The Plug Power stock continues its downward trend this week. After three trading days, the stock is down by 5.8 percent, closing at 1.45 euro (closing price on March 19, 2025, Stuttgart Stock Exchange). Since the start of the year, this results in a price loss of 36.4 percent. Plug Power is thus one of the weakest stocks in the RENIXX index.

Source: IWR Online, 20 Mar 2025