PLUG - Why Plug Power Stock Crashed 14% on Friday
2024-07-19 15:14:08 ET
Plug Power (NASDAQ: PLUG) stock tumbled more than 17% in morning trading Friday after the fuel cell and hydrogen fuel production company announced the surprise sale of more than 78.7 million shares of stock in an effort to raise cash to keep itself in business.
As of 2:20 p.m. ET, shares are still down 13.7%.
Plug Power closed at $2.92 per share last night, but the company said it will be selling its stock for just $2.54 per share, raising $200 million in new capital for the company. Management noted, however, that if demand is sufficient, it hopes to sell 11.8 million more shares -- so 90.5 million in all, raising its total cash haul to roughly $230 million before costs and underwriting fees.
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Why Plug Power Stock Crashed 14% on Friday