Plug Power Down After Stock Offering Priced at Discount

Plug Power shares fell after the hydrogen fuel cell company priced a stock offering at an 11% discount to Monday’s close.
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Plug Power  (PLUG) - Get Report shares tumbled on Tuesday after the hydrogen fuel cell company priced a stock offering at an 11% discount to Monday’s close.

It’s offering 38 million common shares at $22.25 each. The Latham, N.Y., company closed Monday at $25. 

It recently traded at $21.84, down 13%. The shares have skyrocketed by a factor of nearly seven year to date through Monday.

As part of the offering, the underwriters have a 30-day option to buy as many as 5.7 million more shares at the offering price, less the underwriting discount.

The issuance is expected to close around Thursday. Morgan Stanley is bookrunning manager.

Plug Power said in a statement it would use the funds for working capital and general purposes, including possibly capital spending, acquisitions, growth opportunities and strategic transactions.

TheStreet.com’s Jim Cramer recommended the stock on Nov. 2. 

"Everyone should be watching green hydrogen," he said. “It is one of the most amazing themes. Plug Power has a lot of contracts with the FedExes  (FDX) - Get Report of the world, with the Walmarts  (WMT) - Get Report of the world. You bring Plug Power in when you’re trying to get to carbon-neutral.”

Last week Plug Power reported better-than-expected third-quarter results. 

It posted a net loss of $39.4 million, or 11 cents a share, widening from $18.2 million, or 8 cents, in the year-earlier quarter. The FactSet analyst consensus called for a 7-cent loss in the latest quarter.