NEW YORK (TheStreet) -- Plug Power (PLUG) stock is trading lower Friday after the company announced it would sell 22.6 million shares, more than the 15 million it had initially planned to sell. The alternative energy company said it had priced the offering at $5.50 a share, an 8.5% discount to Thursday's close of $6.01.
By market open, shares had dropped -5.8% to $5.66.
Plug Power said it had also granted underwriters a 30-day option to purchase up to an additional 3.39 shares. The gross proceeds will be $124.3 million, while net proceeds are expected to total $116.3 million.
In a statement, the company said it intends to use proceeds for "working capital and general corporate purposes, which may include capital expenditures and potential acquisitions."
The offering is expected to close around April 30.
Morgan Stanley and Barclays are acting as the book-running managers, while Cowen and Company and FBR Capital Markets will act as co-managers for the offering.
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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."