Plug Power Plunges to Record After Announcing Share SaleJustin Doom
Plug Power Inc., the fuel-cell maker that’s reported a net loss each quarter since it began trading publicly, fell to a record low after saying it intends to sell shares for 40 percent less than yesterday’s closing price.
Plug Power dropped 52 percent to 12 cents at the close in New York. Volume was more than 11,000 percent of the three-month daily average with 27.7 million shares trading. The company has fallen 95 percent in the past year.
The company plans to sell packages of one share and one warrant for 15 cents, which is 10 cents less than the closing price yesterday, Latham, New York-based Plug Power said in a statement today. Plug Power intends to raise about $2.8 million.
Plug Power plans “to use the net proceeds of the offering for working capital and other general corporate purposes, including capital expenditures,” according to the statement.
“We continue to look at whether we should raise more capital and how we should raise it,” Gerry Conway, a company spokesman, said today in an interview. “We’re looking at the whole spectrum of possible types of capital raises.”