Particle.news

Plug Power Soars as CEO Takes Reddit Pitch Ahead of Jan. 29 Share Vote

Plug Power seeks approval to double its authorized shares to raise cash for ongoing operations.

Overview

  • A special meeting on Jan. 29 will ask investors to lift authorized shares from 1.5 billion to 3.0 billion to enable new equity fundraising.
  • CEO Andy Marsh held a Reddit AMA that preceded a 16.7% jump to a $2.59 close on unusually heavy volume of about 183 million shares.
  • Plug Power said it reached an agreement with Walmart to cancel a 2017 stock warrant, removing one potential source of future dilution.
  • If the share increase is rejected, the company says it will pursue a reverse stock split, and it is proposing a charter change to align voting standards with Delaware law.
  • Recent quarterly results showed $177 million in revenue and a $361 million net loss, and TD Cowen cut its rating and price target citing execution and free-cash-flow concerns.