Plug Power shareholders approve reverse stock split and director elections

Plug Power Inc. (NASDAQ:PLUG), currently trading at $1.42 with a market capitalization of $1.6 billion, announced the results of its annual meeting of stockholders held Thursday, according to a statement based on a recent SEC filing. The meeting comes as InvestingPro data shows the stock has declined nearly 47% over the past six months. Shareholders approved several key proposals, including the election of three Class II directors and a reverse stock split, while other proposals did not gain the required majority.

Mark J. Bonney, Gregory L. Kenausis, and George C. McNamee were each elected as Class II directors to serve until the 2028 annual meeting. The voting results for these directors were as follows: Bonney received 246,774,895 votes in favor and 37,175,711 withheld; Kenausis received 245,679,720 in favor and 38,270,886 withheld; McNamee received 231,970,923 in favor and 51,979,683 withheld. There were 209,615,406 broker non-votes for each candidate. These directors face significant challenges, as InvestingPro analysis indicates the company is quickly burning through cash with a negative EBITDA of $949 million in the last twelve months.

Shareholders approved an amendment to the company’s charter authorizing the board to effect a reverse stock split of Plug Power’s common stock at a ratio between 1-for-5 and 1-for-200, with the exact ratio to be determined by the board. The proposal received 27,023,485,874 votes for, 17,749,292,789 against, and 720,787,349 abstentions.

An amendment to the company’s 2021 Stock Option and Incentive Plan was also approved, increasing the number of shares reserved under the plan by 40,000,000 to a total of 91,400,000 shares. The proposal received 230,914,326 votes for, 46,760,977 against, and 6,275,303 abstentions, with 209,615,406 broker non-votes. This comes as the company faces profitability challenges, with analysts not expecting positive earnings this year according to InvestingPro forecasts.

Shareholders approved a non-binding advisory resolution regarding executive compensation and ratified the appointment of Deloitte & Touche LLP as independent registered public accounting firm for the fiscal year ending December 31, 2025.

Proposals to increase the number of authorized shares of common stock, to amend voting requirements for share increases or decreases, and to provide for officer exculpation did not receive the required majority and were not approved.

This information is based on a statement contained in the company’s recent SEC filing.

In other recent news, Plug Power has been actively involved in several significant developments. The company announced a major expansion of its partnership with Allied Green Ammonia, which includes a new 2-gigawatt electrolyzer project in Uzbekistan. This project is part of a larger $5.5 billion green chemical production facility aimed at producing sustainable fuels and highlights Plug Power’s role in global decarbonization efforts. In addition, H.C. Wainwright has reiterated its Buy rating for Plug Power, maintaining a $3 price target, citing potential benefits from extended hydrogen production tax credits under the One Big Beautiful Bill Act.

Moreover, Plug Power’s Chief Financial Officer, Paul Middleton, has increased his stake in the company by purchasing an additional 650,000 shares, indicating confidence in the company’s strategic direction. The company’s operations have also been bolstered by legislative discussions around the preservation of hydrogen tax credits, which could provide crucial financial support. Additionally, Plug Power’s shares saw a notable increase after Republican Senator John Cornyn suggested a potential plan to rescue these tax credits. These developments collectively underscore Plug Power’s ongoing efforts to scale its hydrogen production capabilities and enhance its market position.

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