Plug Power Secures $6.5 Million Strategic Investment From Air Liquide
Investment Is Endorsement of Plug Power's Hydrogen Fuel Cell Strategy by World
Leader in Industrial Gas Products
LATHAM, N.Y., May 8, 2013 (GLOBE NEWSWIRE) -- Plug Power Inc. (Nasdaq:PLUG), a
leader in providing clean, reliable energy solutions, today announced a $6.5
million (Euro 5 million) strategic investment from its partner Air Liquide,
which includes a preferred stock purchase, increased ownership of the
companies' HyPulsion joint venture and an engineering services contract.
The investment is a significant endorsement of Plug Power's strategy to grow
its business of hydrogen fuel cells for forklift trucks and other horizontal
markets. The company has seen sales of its GenDrive fuel cells increase by 36
percent in 2012. The products have been successfully deployed at customers
such as Walmart, Sysco, P&G, BMW and the recently announced Ace Hardware Corp.
Including this investment, the company has raised $12 million so far in 2013.
"Air Liquide is a respected industry player, which is why this investment is a
great validation of Plug Power's strategy," said Andy Marsh, Plug Power
President and CEO. "The additional funds will be instrumental in providing the
liquidity we need for growth. But the endorsement and board expertise we also
get is just as important."
Air Liquide's investment in Plug Power includes the following components:
*A $2.6 million (Euro 2 million) investment in convertible preferred stock
with a 60% percent conversion premium to market and an 8 percent coupon.
As part of this stock purchase, an Air Liquide representative will join
Plug Power's board. The parties have signed a Securities Purchase
Agreement for the investment and the transaction is expected to close no
later than May 22^nd.
*Air Liquide also purchased from Plug Power a 25 percent ownership interest
in HyPulsion for $3.3 million (Euro 2.5 million).HyPulsion is a joint
venture between Axane, an Air Liquide subsidiary, and Plug Power to market
hydrogen fuel cells into European markets.After the investment, Plug
Power owns 20 percent of HyPulsion, but has the right to purchase a
majority interest in 2018.
*The companies have also signed a $659,000 (Euro 500,000) engineering
service contract in order to accelerate the development of the European
market for hydrogen forklift with the Europeanization of key components.
Further details relating to the preferred stock investment and related
transactions can be found in Plug Power's Current Report on Form 8-K filed
today with the Securities and Exchange Commission.
About Plug Power Inc.
The architects of modern fuel cell technology, Plug Power revolutionized the
industry with cost-effective power solutions that increase productivity, lower
operating costs and reduce carbon footprints.Long-standing relationships with
industry leaders forged the path for Plug Power's key accounts, including
Walmart, Sysco, P&G and Mercedes.With more than 3,000 GenDrive units deployed
to material handling customers, accumulating over 8 million hours of runtime,
Plug Power manufactures tomorrow's incumbent power solutions today. Additional
information about Plug Power is available at www.plugpower.com.
Safe Harbor Statement
This communication contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These statements are
based on current expectations that are subject to certain assumptions, risks
and uncertainties, any of which are difficult to predict, are beyond
ourcontrol and that may cause our actual results to differ materially from
the expectations in such forward-looking statements, including the risk that
we may not have sufficient cash to fund our operations to profitability and
that we may be required to seek strategic alternatives, including but not
limited to a potential business combination or a sale of the company, or
reduce and/or cease our operations, that unit orders will not ship, be
installed and/or convert to revenue, in whole or in part; development ofour
products may take longer and cost more than we expect and we may not be able
to raise the necessary capital to fund such development costs; we may not be
able to increase the margin on the sale of our products as much as expected or
at all ; our actual net cash used for operating expenses may exceed our
projected net cash for operating expenses; the fuel and fueling
infrastructures for our products may not be available or may cost more than
expected; our GenDrive system may not reach wider market acceptance; we may
not be able to establish and maintain necessary relationships with third
parties for product development, manufacturing, distribution and servicing and
the supply of key product components; components and parts for our products
may not be available or may cost more than expected; we may be unable to
develop commercially viable products; we may be unable to reduce product and
manufacturing costs; we may be unable to successfully expand our product
lines; we may be unable to improve system reliability for GenDrive; we may
suffer price competition and competition from other traditional and
alternative energy companies; we may be unable to manufacture products on a
large-scale commercial basis; we may be unable to protect our intellectual
property; compliance with current and future governmental regulations may be
costly; and other risks and uncertainties discussed under "Item IA-Risk
Factors" in our annual report on Form 10-K for the fiscal year ended December
31, 2012, filed with the Securities and Exchange Commission ("SEC") on April
1, 2013 and as amended on April 30, 2013, and the reports we file from time to
time with the SEC. We do not intend to, and we undertake no duty to update any
forward-looking statements as a result of new information or future events.
CONTACT: For additional information contact:
David Rodewald / Amber Hack +1 805-494-9508
The David James Agency | Plug Power
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