Plug Power announces a much-awaited funding

Plug Power Inc (NASDAQ: PLUG) is up more than 50% at writing after announcing a “conditional commitment” for a $1.66 billion loan guarantee from the DOE (Department of Energy). 

What will $PLUG do with the new funds?

The $2.5 billion company based out of Latham, New York plans on using the funds to expand its network of hydrogen plants across the United States. 

$PLUG is convinced the financing will also “prove instrumental to grow and scale” the U.S. hydrogen solutions industry at large, as per its press release on Tuesday.

The news arrives only days after the Nasdaq-listed firm reported its financial results for the first quarter that fell shy of Street estimates (find out more). 

Plug Power stock is now up nearly 100% versus its year-to-date low on May 1st. 

Plug Power ended Q1 with $173 million in cash

Plug Power dubbed the loan guarantee a “significant milestone” on Tuesday but acknowledged that it needs to satisfy a bunch of “technical, legal, environmental, and financial conditions” to officially receive funds from the DOE. 

Note that the clean energy company has been anticipating the announced financing for months. Meanwhile, it’s been committed to refining cash management internally. 

In Q1, $PLUG trimmed the net cash it used for capital expenditures and operating activities by a whopping 38% sequentially. The U.S. firm ended the quarter with $173 million in cash.

Wall Street currently has a consensus “hold” rating on Plug Power stock that is already trading above the analysts’ price target (average) of $4.82.

Watch here: https://www.youtube.com/embed/BdZBQApuGhM?feature=oembed

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