Has Plug Power Done Enough to Plug the Hole in its Finances?
Plug Power (NASDAQ: PLUG) has been a disastrous investment over the past year. Its stock has collapsed, falling more than 80%. The primary factor weighing on the stock has been concerns that it could run out of money.
However, Plug Power recently took a step to address that issue. It plans to raise $1 billion in fresh equity capital to fund its operations and expansion. Here's a look at whether that will be enough to keep the hydrogen stock afloat.
Plug Power's stock plunged last November after revealing it had growing concerns about its ability to continue operating because of a liquidity crunch. The company was battling significant supply challenges in the North American hydrogen market. As a result, the company said at the time that it "is projecting that its existing cash and available for sale and equity securities will not be sufficient to fund its operations through the next twelve months." Plug planned to pursue several options to raise fresh capital, including issuing debt on the corporate level or tapping a loan program of the U.S. Department of Energy.
Source Fool.com
