Jun 9, 2022
The company is about to launch a new financing initiative.
Plug Power (PLUG -8.74%) stock didn't have much juice on the second-to-last day of the trading week. Shares of the hydrogen fuel cell specialist closed Thursday nearly 9% lower after the company disclosed plans for a new capital-raising effort.
Plug Power divulged the fresh initiative in a regulatory filing, but the details and specifics were sparse. The company will float one, several, or all of the following: common stock, preferred stock, warrants, debt securities, and units (typically, combinations of two or more different securities).
Plug Power was only slightly more forthcoming about what it intends to do with the proceeds of these issues. They will be utilized for the ever-popular "general corporate purposes," which the company said could include activities such as acquisitions, capital expenditures, and stock buybacks
As of the end of March, the company had just over 578 million shares of common stock outstanding.
Investors usually get spooked when informed that their company might be gearing up for a dilutive share issue.
It's important to note here that although issuance of common stock is a likely possibility (since it's relatively quicker, easier, and brings in less burdensome financing than issuing debt instruments), it's not certain that's the way Plug Power will go. Even if it chooses a purely debt-based route, though, that would still affect the company's fundamentals.
That said, we'll need to know more specifics about the company's capital-raising plans -- their amounts, forms, and timing, mainly -- before we can judge what kind of impact they might have on Plug Power. It's unwise to exit a stock position in a company merely on the vague news that it's seeking more capital.
https://www.fool.com/investing/2022/06/ ... -thursday/
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June 08, 2022 Form S-3ASR Automatic shelf registration statement of securities of well-known seasoned issuers
Automatic shelf registration statements
All automatic shelf registration statements expire after three years, regardless of the type of offering.
A WKSI can file automatic shelf registration statements, which are effective immediately upon filing. Automatic effectiveness means a filing is not subject to review by the SEC, which avoids a potential source of delay in registration.
(WKSI : well-known seasoned issuer)
USE OF PROCEEDS Unless otherwise indicated in the applicable prospectus supplement, we will use the net proceeds received by us from our sale of the securities described in this prospectus for our working capital and other general corporate purposes, including capital expenditures. We may temporarily invest the net proceeds in a variety of capital preservation instruments, including investment grade, interest bearing instruments and U.S. government securities, until they are used for their stated purpose.
USE OF PROCEEDS Unless otherwise indicated in the applicable prospectus supplement, we will use the net proceeds received by us from our sale of the securities described in this prospectus for general corporate purposes, which may include, without limitation, repayment of existing indebtedness, the financing of possible acquisitions and investments, capital expenditures, stock repurchases and for working capital. We may temporarily invest the net proceeds in a variety of capital preservation instruments, including investment grade, interest bearing instruments and U.S. government securities, until they are used for their stated purpose. Unless otherwise set forth in the applicable prospectus supplement, we will not receive any proceeds in the event that securities are sold by a selling security holder.
Mogelijke “USE OF PROCEEDS”in 2022:
- the financing of possible acquisitions
- stock repurchases
PRE 14A - PLUG POWER INC (0001093691)
The approval of the Fifth Certificate of Amendment of the Amended and Restated Certificate of Incorporation of the Company to increase the number of authorized shares of common stock from 750,000,000 shares to 1,500,000,000 shares as described in the accompanying proxy statement;
If the Charter Amendment is approved by the stockholders, 1,500,000,000 shares of Common Stock will be authorized for issuance and the additional authorized shares of Common Stock may be issued by the Company without any further action by the stockholders. Any additional authorized shares of Common Stock, if and when issued, would be part of the Company’s existing class of Common Stock, and would have the same rights and privileges as the currently outstanding shares of Common Stock. The issuance of additional authorized shares of Common Stock, may, among other things, have a dilutive effect on earnings per share and on the equity and voting power of existing holders of Common Stock. Although the Board of Directors has no present intention of issuing additional shares for such purposes, the proposed increase in the number of authorized shares could also enable the Board of Directors to render more difficult or discourage an attempt by another person or entity to obtain control of the Company.