Plug Power Plugs Its Shareholders With Poorly Timed Secondary Offering (PLUG)

Plug Power Inc. (NASDAQ: PLUG) is effectively plugging its shareholders.  The alternative and clean-energy player has announced that it intends to offer its common stock in an underwritten public offering through the sole book-runner of Roth Capital Partners.

The offering terms were not immediately set, but this is probably coming in the hours or days ahead.  The company noted, “there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.”

It is the company itself raising cash in this offering rather than holders and the “use of proceeds” is for general corporate purposes.  Plug noted that this may include for working capital, capital expenditures, research and development expenditures, commercial expenditures, acquisitions of new technologies or businesses that are complementary to its current technologies or business focus, and investments.

The timing of a share sale from Plug Power is a rather poor one as its share price is $1.41 and the 52-week trading range is $0.62 to $7.00.  The market cap is a mere $32 million now.  Shares are down over 4% at $1.35 in the after-hours session.

JON C. OGG