Plug Power Inc., a US-based provider of hydrogen solutions, has entered into an agreement with an existing institutional investor for the immediate exercise of 185,430,464 warrants issued in March. The transaction is expected to generate approximately $370mn in gross proceeds before fees, strengthening the company’s liquidity and supporting its growth initiatives.
A structured deal unlocking future financing
As part of the transaction, the investor will receive 31,000,000 common shares along with pre-funded warrants to acquire an additional 154,430,464 shares. In exchange, Plug Power will issue new warrants totalling 185,430,464 shares, with an exercise price set at $7.75. This represents a premium of approximately 100% over the closing price on October 7.
The new warrants will only become exercisable following shareholder approval to increase authorised share capital or in the event of a reverse stock split. No shares will be issued unless these conditions are met. Plug Power indicated that the new warrants could be settled in cash from February 28, 2026, if common shares are not available at that time.
Potential for an additional $1.4bn raise
If the new warrants are fully exercised on a cash basis, the company could raise approximately $1.4bn in additional gross proceeds. However, there is no assurance that any of the new warrants will be exercised. The offering is expected to close on or around October 9, subject to customary conditions.
Plug Power plans to use the net proceeds for working capital and general corporate purposes. The structure of the deal provides the company with access to significant capital while retaining strategic flexibility regarding future equity issuance.
