Under the deal, the investor exercises warrants issued in March 2025 to buy 185 million shares at $2 each. In return, the investor received new warrants to purchase the same number of shares later at $7.75 – almost double the company’s current share price.
The structure gives Plug a near-term cash injection to support operations and improve liquidity.
The US green hydrogen firm also highlighted the potential to raise a further $1.4bn if new warrants are exercised in the future.
“No assurance can be given that any of the new warrants will be exercised,” the company said in its statement. “Plug Power intends to use the net proceeds from this offering for working capital and general corporate purposes.”
The transaction follows a June appeal to shareholders to approve more authorised shares and a potential reverse stock split, as Plug’s sub-$1 share price limited its ability to raise capital.
The deal comes as Plug aims to stabilise its finances after years of heavy losses. The firm has never logged a profit in its nearly three decades of existence and has accumulated a deficit of nearly $7bn.
Plug expects to reach margin neutrality by Q4 2025, following cost-cutting measures such as job reductions and facility consolidation.
The cash injection also comes ahead of a major leadership change at the company.
Plug announced yesterday (October 7) that long-time CEO Andy Marsh would step down in March 2026 and be replaced by the current Chief Revenue Officer, Jose Luis Crespo.
Crespo said his focus will be “execution, profitability, and customer success, ensuring that Plug continues to convert its technology into sustainable growth.”
The $370m transaction was led by Oppenheimer & Co., with several boutique investment banks acting as co-advisors, including BTIG and H.C. Wainwright.
Why Plug Power still sources third-party hydrogen
As Plug Power aims to build out its own production, the US company will continue to buy hydrogen at higher costs to ensure an uninterrupted supply for its material handling business.
While it may limit short-term profit potential, Vice President of Product and Technology Luke Wentlent described the strategy as one of “risk management.”
Since launching its first forklift in 2007, the company has focused on the material handling segment, rarely deviating into other mobility markets.
Plug sees its control over the entire material handling process, from fuel sourcing and refuelling, to powertrains as key to proving its technology.
“If you can’t provide the fuel, it doesn’t work,” Wentlent added. “We realised adoption required end-to-end solutions.”
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