Shares of hydrogen fuel cell maker Plug Power (NASDAQ:PLUG) gained 5% as of 2:30 p.m. EST Tuesday. The company completed an upsized capital raise for more than $2 billion on the same day that the hydrogen fuel cell electric vehicle (FCEV) sector was also in the news.
Plug Power announced it completed its previously announced stock offering of 32 million shares, bringing in more than $2 billion in proceeds at a $65 offering price. Shares are currently trading at about $69.
Additionally, FCEV truck maker Hyzon announced it will be merging with a special purpose acquisition company (SPAC) to begin trading publicly sometime during the second quarter of 2021. The additional publicity in the FCEV market may have investors looking harder at the fuel cell makers like Plug Power today.
Plug Power now has a cash balance of over $5 billion after the stock transaction coupled with a recent investment by SK Group, which gave the South Korean industrial company a 10% stake in Plug Power in exchange for a $1.5 billion investment.
The company said it now has the financial flexibility to “execute and accelerate its green hydrogen and overall growth strategy.” Specifically, the company plans this year to accelerate the expansion of green hydrogen generation, grow overseas prospects, and continue to expand through partnerships, joint ventures, and acquisitions.