Why Plug Power (PLUG) Stock Is Lower Wednesday

NEW YORK (TheStreet) -- Plug Power (PLUG) stock is lower Wednesday after the company announced it plans to offer 15 million shares of common stock in an underwritten public offering. 

By midmorning, shares were -5.4% lower to $6.33.

In an SEC filing, the company said it would offer 15 million shares, plus grant underwriters a 30-day option to purchase up to an additional 2.25 million shares. Following the offering, Plug Power will have as many as 123.44 million shares outstanding. 

The alternative fuel company said it plans to use net proceeds for "working capital and general corporate purposes, which may include capital expenditures and potential acquisitions."

Morgan Stanley and Barclays are acting as book-running managers, while Cowen and Company and FBR  Capital Markets are co-managers for the offering. 

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Separately, TheStreet Ratings team rates PLUG POWER INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:

"We rate PLUG POWER INC (PLUG) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and weak operating cash flow."

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