Plug Power Secures $6.5 Million Strategic Investment From Air Liquide
08 Maggio 2013 - 3:20PM
Plug Power Inc. (Nasdaq:PLUG), a leader in providing clean,
reliable energy solutions, today announced a $6.5 million (Euro 5
million) strategic investment from its partner Air Liquide, which
includes a preferred stock purchase, increased ownership of the
companies' HyPulsion joint venture and an engineering services
contract.
The investment is a significant endorsement of Plug Power's
strategy to grow its business of hydrogen fuel cells for forklift
trucks and other horizontal markets. The company has seen sales of
its GenDrive fuel cells increase by 36 percent in 2012. The
products have been successfully deployed at customers such as
Walmart, Sysco, P&G, BMW and the recently announced Ace
Hardware Corp.
Including this investment, the company has raised $12 million so
far in 2013.
"Air Liquide is a respected industry player, which is why this
investment is a great validation of Plug Power's strategy," said
Andy Marsh, Plug Power President and CEO. "The additional funds
will be instrumental in providing the liquidity we need for growth.
But the endorsement and board expertise we also get is just as
important."
Transaction Details
Air Liquide's investment in Plug Power includes the following
components:
- A $2.6 million (Euro 2 million) investment in convertible
preferred stock with a 60% percent conversion premium to market and
an 8 percent coupon. As part of this stock purchase, an Air Liquide
representative will join Plug Power's board. The parties have
signed a Securities Purchase Agreement for the investment and the
transaction is expected to close no later than May 22nd.
- Air Liquide also purchased from Plug Power a 25 percent
ownership interest in HyPulsion for $3.3 million (Euro 2.5
million). HyPulsion is a joint venture between Axane, an Air
Liquide subsidiary, and Plug Power to market hydrogen fuel cells
into European markets. After the investment, Plug Power
owns 20 percent of HyPulsion, but has the right to purchase a
majority interest in 2018.
- The companies have also signed a $659,000 (Euro 500,000)
engineering service contract in order to accelerate the development
of the European market for hydrogen forklift with the
Europeanization of key components.
Further details relating to the preferred stock investment and
related transactions can be found in Plug Power's Current Report on
Form 8-K filed today with the Securities and Exchange Commission.
About Plug Power Inc.
The architects of modern fuel cell technology, Plug Power
revolutionized the industry with cost-effective power solutions
that increase productivity, lower operating costs and reduce carbon
footprints. Long-standing relationships with industry leaders
forged the path for Plug Power's key accounts, including Walmart,
Sysco, P&G and Mercedes. With more than 3,000 GenDrive
units deployed to material handling customers, accumulating over 8
million hours of runtime, Plug Power manufactures tomorrow's
incumbent power solutions today. Additional information about Plug
Power is available at www.plugpower.com.
Safe Harbor Statement
This communication contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These statements are based on current expectations that are
subject to certain assumptions, risks and uncertainties, any of
which are difficult to predict, are beyond our control and
that may cause our actual results to differ materially from the
expectations in such forward-looking statements, including the risk
that we may not have sufficient cash to fund our operations to
profitability and that we may be required to seek strategic
alternatives, including but not limited to a potential business
combination or a sale of the company, or reduce and/or cease our
operations, that unit orders will not ship, be installed and/or
convert to revenue, in whole or in part; development of our
products may take longer and cost more than we expect and we may
not be able to raise the necessary capital to fund such development
costs; we may not be able to increase the margin on the sale of our
products as much as expected or at all ; our actual net cash used
for operating expenses may exceed our projected net cash for
operating expenses; the fuel and fueling infrastructures for our
products may not be available or may cost more than expected; our
GenDrive system may not reach wider market acceptance; we may not
be able to establish and maintain necessary relationships with
third parties for product development, manufacturing, distribution
and servicing and the supply of key product components; components
and parts for our products may not be available or may cost more
than expected; we may be unable to develop commercially viable
products; we may be unable to reduce product and manufacturing
costs; we may be unable to successfully expand our product lines;
we may be unable to improve system reliability for GenDrive; we may
suffer price competition and competition from other traditional and
alternative energy companies; we may be unable to manufacture
products on a large-scale commercial basis; we may be unable to
protect our intellectual property; compliance with current and
future governmental regulations may be costly; and other risks and
uncertainties discussed under "Item IA-Risk Factors" in our annual
report on Form 10-K for the fiscal year ended December 31, 2012,
filed with the Securities and Exchange Commission ("SEC") on April
1, 2013 and as amended on April 30, 2013, and the reports we file
from time to time with the SEC. We do not intend to, and we
undertake no duty to update any forward-looking statements as a
result of new information or future events.
CONTACT: For additional information contact:
David Rodewald / Amber Hack +1 805-494-9508
The David James Agency | Plug Power
plugpower@davidjamesagency.com
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