Plug Power Inc (NASDAQ:PLUG)
More than 3 years after a Wal-Mart Stores Inc (NYSE:WMT) transaction report pushed the firm’s stock to multi-year high of around $11, Plug Power Inc (NASDAQ:PLUG) is finally back with a boom by disclosing a deal with Amazon.com, Inc. (NASDAQ:AMZN) to use Plug Power hydrogen technology and fuel cells in its fulfillment network.
The update indicates that at selected fulfillment center sites, Amazon will start powering its industrial equipment like forklifts utilizing the GenKey know-how which will provide faster charging times, support energy-efficiency and reduced costs in Amazon’s fulfillment operations.
Following the update, the stock price of Plug Power jumped more than 73% to close the day at $2.25. The gains were supported by a massive volume figure of 137.14 million compared to average share volume of 6.15 million.
Andy Marsh, the CEO of Plug Power, reported that this deal is a remarkable opportunity for Plug Power Inc (NASDAQ:PLUG) to further innovate and advance. The hydrogen fuel cell based technology, commitment to offering cost-savings for consumers, and comprehensive service network has allowed the company to become a trusted associate to many in the industry and they are thrilled to work with Amazon. Revenues associated with the reported commercial agreements are anticipated to be about $70 million in 2017.
Additionally, Plug Power and Amazon will start working on technology collaboration, evaluating the expansion of applications for a product line of ‘ProGen’ fuel cell engines. For the deal, Plug Power has granted Amazon warrants to buy up to 55.286 million of Plug Power’s stock at exercise price of $1.1893 per share.
Vesting of the warrants is linked to payments of $600 million by Amazon, indirectly or directly, in connection with the procurement of services and goods from Plug Power Inc (NASDAQ:PLUG). An adjustment to the reported exercise price is expected to occur after the initial 34.917 million warrants have assigned. The details of the vesting process and warrants is detailed in a Form 8-K report submitted by Plug Power with the SEC.
The architects of modern fuel cell and hydrogen technology, Plug Power is the modernizer taking hydrogen fuel cell know-how from concept to commercialization. The company has developed the industry with its GenKey solution, which is intended to enhance productivity, reduce carbon footprints and lower operating costs in a reliable, cost-effective measure. GenKey solution brings together all the required elements to fuel, power and serve a customer.
|Last Price a/o 3:21 PM EST||$2.25|
|Market Cap (mlns)||$ 436.14M|
|Shares Outstanding (mlns)||193.84M|
|Share Float (mlns)||188.99M|
|Short Interest Ratio||5.54|
I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.
About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.