Plug Power Inc (NASDAQ:PLUG) shares are moving lower Thursday after rallying more than 25% on Wednesday. Here’s a look at what’s going on.
What To Know: Plug Power has announced that it issued a warrant for the offer and sale of up to 31.5 million shares of common stock by Yorkville, the selling stockholder.
The warrant was issued pursuant to a secured debenture purchase agreement dated April 28. The registration does not guarantee that any shares will be sold. Plug Power will not receive any proceeds from shares sold by the selling stockholder, but the company will receive proceeds related to any cash exercise of the warrant. Plug Power provided the update in a prospectus dated July 9.
The news comes after Plug shares ripped higher on Wednesday after the company announced a new multi-year enhanced supply agreement with a leading U.S.-based industrial gas company and longtime hydrogen partner. The agreement extends the companies’ strategic relationship through 2030.
“This expanded agreement supports our mission to build on our already robust and resilient hydrogen network in the U.S. As we continue to scale our applications business and build long-term partnerships with customers, reliable supply and cost efficiency are critical,” said Andy Marsh, CEO of Plug Power.
“This contract is a win for Plug, our customers, our suppliers and our margin profile. The immediate cost reduction complements our progress this year with Project Quantum Leap, focused on cost optimization and cash flow improvement.”
How To Buy PLUG Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Plug Power’s case, it is in the Industrials sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
PLUG Price Action: Plug Power shares were down 4.40% at $1.70 at the time of publication Thursday, according to Benzinga Pro.
Read Next:
Photo: courtesy of Plug Power.
