Plug Power: Share price rises by 31 percent - how financing signals influence the company

HowBNN Bloombergreports that Plug Power is close to closing on a $1.6 billion loan from the U.S. Department of Energy and is cutting spending to shore up its balance sheet. The interest rate should therefore be a maximum of 6.5 percent. According to CFO Paul Middleton, the loan is expected to be finalized in the third quarter. The company plans to use the money to support up to six hydrogen plants. However, the Ministry of Energy can do so upon requestBNN Bloombergdo not comment on loan applications.

“This lower-cost capital is incredibly helpful,” quotedBNN BloombergCFO Middleton. However, there is still a lot of time until the third quarter of 2024. The company wants to obtain the short-term capital that Plug Power needs directly on the capital market via an ATM program.

“Resolving the critical issue of cash management and the continuation of our company is now a top priority,” Plug Power boss Andy Marsh is quoted as saying. Coli Rusch, an analyst at Oppenheimer, believes that “the company will be able to meet its going concern requirement in the first quarter.”

Plug Power dispelled initial concerns on Tuesday. However, the loan is still not dry and the implementation of the ATM program (DER AKTIONÄR reported) leads to massive dilution for shareholders. Despite initial signals of financial easing, investors should continue to avoid the share for the time being.