Plug Power announces $371 million warrant inducement agreement with investor

Plug Power Inc. (NASDAQ:PLUG), currently trading at $3.87 and showing significant volatility according to InvestingPro data, announced Wednesday it has entered into a warrant inducement agreement with an investor holding warrants issued on March 20, 2025. The company, which InvestingPro analysis indicates is currently trading above its Fair Value, has been actively seeking capital amid challenging market conditions. The agreement, disclosed in a press release statement and filed with the Securities and Exchange Commission, provides that the investor will exercise in full all existing warrants for cash at an exercise price of $2.00 per share.

In connection with the exercise, Plug Power will amend the existing warrants to allow for the issuance of pre-funded warrants if the investor’s beneficial ownership would exceed a specified threshold. The company will also issue new warrants to the investor, enabling the purchase of up to 185,430,464 shares of common stock. The transaction is expected to close on or about Thursday, subject to customary closing conditions.

According to the filing, the purchase price for each pre-funded warrant will be $1.9999 per share, and each pre-funded warrant will be immediately exercisable for one share of common stock at $0.0001 per share. Both the pre-funded warrants and the new warrants will expire on March 20, 2028.

The new warrants will allow the investor to purchase up to 185,430,464 shares of common stock at an exercise price of $7.75 per share. These new warrants will become exercisable only after Plug Power increases its authorized shares to a sufficient amount. If the company does not increase its authorized shares by February 28, 2026, the new warrants will be cash settled.

Plug Power expects gross proceeds of approximately $371 million from the transaction before expenses and fees. If the new warrants are fully exercised for cash, the company could receive up to an additional $1.4 billion in gross proceeds. This capital raise comes at a crucial time, as InvestingPro data reveals the company reported negative EBITDA of $875 million in the last twelve months. The company stated that proceeds will be used for working capital and general corporate purposes. InvestingPro subscribers have access to 16 additional key insights about PLUG’s financial health and market position through the comprehensive Pro Research Report.

The warrants include limitations preventing the investor from owning more than 4.99% (or up to 9.99% upon election) of Plug Power’s outstanding common stock immediately after exercise.

This information is based on a press release statement and Plug Power’s filing with the Securities and Exchange Commission.

In other recent news, Plug Power Inc. has secured approximately $370 million in gross proceeds through an agreement with an existing institutional investor for the immediate exercise of outstanding warrants. This transaction involves the exercise of warrants to purchase 185,430,464 shares of common stock at $2.00 per share. Additionally, the company announced a leadership change, naming Jose Luis Crespo as the new Chief Executive Officer, effective upon the filing of the company’s 2025 annual report, expected in March 2026. Crespo, who has been with the company since 2014, will succeed Andy Marsh, who will become the Executive Chair of the Board.

In terms of stock ratings, Clear Street downgraded Plug Power from Buy to Hold, citing valuation concerns with a price target set at $3.50. Oppenheimer maintained its Perform rating for the company, acknowledging ongoing organizational transformations, including leadership changes and cost optimization efforts. The appointment of Crespo as President took effect on October 10, 2025, with George McNamee named as Lead Director. These developments reflect significant strategic shifts for Plug Power as it continues to navigate its market position.

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