What's Going On With Plug Power Stock?

Plug Power Inc PLUG stock is in the spotlight on Monday after the company entered into an agreement to increase the amount of shares available for issuance under its previously disclosed at the market offering agreement.

What Happened: On Jan. 17, Plug Power entered into an at market issuance sales agreement with B. Riley Securities, in which the company may, from time to time, offer and sell shares of its common stock with an aggregate offering price of up to $1 billion.

On Feb. 23, Plug said it entered into Amendment No. 1 to the original agreement to expand the amount remaining under the original offering agreement. As of Feb. 23, the company had offered and sold approximately 77.4 million shares at an aggregate price of $302.07 million. The new amendment will increase the aggregate by $302.07 million, bringing the total remaining on the sales agreement back up to $1 billion.

The amendment also increases the amount of shares the company has the right to direct B. Riley to purchase on a principal basis from $10 million to $11 million.

The news comes just weeks after Plug announced a comprehensive initiative designed to significantly reduce its annual operational expenses. The initiative includes an operational consolidation and a strategic workforce adjustment, as well as various other cost-saving actions. 

Plug Power is due to report fourth-quarter financial results before the market open on Friday. The company is expected to report a loss of 44 cents per share on quarterly revenue of $240.532 million, according to estimates from Benzinga Pro.

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PLUG Price Action: Plug Power shares were down 0.7% at $2.98 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Plug Power.