Why Plug Power Stock Plunged 8% Today
Shares of hydrogen fuel cell pioneer Plug Power (NASDAQ: PLUG) ended on a high note Monday, rising 6.7% to close at $25 on the nose. But then the bad news broke.
After close of trading for the day, Plug announced plans to cash in on its stock market success by selling at least $750 million worth of new shares, and perhaps as much as $862.5 million worth. Plug would thus dilute its existing shareholders in a grab for cash to accelerate its already rapid sales growth.
And then the news got worse. Five hours after the initial announcement, Plug revised its plan, saying it will sell 38 million shares of stock at $22.25 per share (for $845.5 million) and then grant underwriters the chance to buy another 5.7 million shares, raising an additional $126.8 million.
Source Fool.com
