Plug Power stock just popped 20%: find out why

Plug Power Inc (NASDAQ: PLUG) made a bunch of positive announcements on an investor call on Tuesday. Its shares are up roughly 20% at writing.

$PLUG finds relief in the funding update

The hydrogen fuel cells company has completed a term-sheet negotiation with the United States Department of Energy for a loan facility worth $1.6 billion. According to Andy Marsh – the chief executive of Plug Power:

Note that the energy company has been struggling with liquidity issues in recent months.

It announced plans of a $1.0 billion stock sale last week after issuing a going-concern warning in December. Plug Power stock is currently down over 80% versus its 52-week high.

Plug Power stock is rallying also because the chief executive told investors on the call today that the hiring freeze remains in place and the company “will use attrition to naturally lower payroll costs”.

The Nasdaq-listed firm plans on lifting prices materially “across all our offerings” as well. Also on Tuesday, Plug Power said production of liquid hydrogen at its plant in Georgia is now live.

The aforementioned facility is designed to produce 15 tons of liquid electrolytic hydrogen per day – that makes it the biggest electrolyser in the United States.

$PLUG is expected to lose 31 cents a share in its current financial quarter versus 38 cents per share a year ago.