Plug Power Inc (NASDAQ:PLUG) Raises Over $15 Million From Investment Firm

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According to documents filed with the regulator, Tech Opportunities has acquired 10.5 million shares in Plug Power Inc (NASDAQ:PLUG) worth approximately $15.75 million. This translated to a unit price of $1.50 a share. Additionally, Tech Opportunities holds the option of acquiring an extra 5.25 million shares for a price of $2.69 a share.

Though not much is known about Tech Opportunities, the firm shares an address with a investment manager registered with the U.S. Securities and Exchange Commission known as Hudson Bay Capital Management. The investment firm also has a 9.99% stake in the Latham, New York-based Plug Power.

Fuel cell supply

The investment by Tech Opportunities in the fuel cell maker follows a multi-year deal Plug Power signed with Amazon.com, Inc. (NASDAQ:AMZN) for the supply of fuel cells that will be used to power the retail giant’s industrial equipment. Some of the industrial equipment includes forklifts that are located in about 11 Amazon fulfilment centers. GenDrive, the fuel cells that Plug Power makes, are used in the powering of forklifts in distribution centers and warehouses.

In 2017, Plug Power expects to earn revenues of approximately $70 million from Amazon. The multi-year deal with Amazon will also offer the ecommerce giant the chance to acquire an equity stake in Plug Power of up to 23%.

Hydrogen fueling stations

Besides fuel cells which serve as a lead-acid battery alternative, Plug Power has hydrogen fueling stations that are known as GenFuel. In the Albany area of New York, the fuel cell maker which employs over 400 technologists, researchers and engineers is one of the biggest manufacturers.

Currently, there are over 14,000 fuel cells made by Plug Power which are used to power industrial electric vehicles such as forklifts in distribution centers and warehouses belonging to some of the world’s biggest retailers. Approximately 80% of Plug Power’s business comes from selling fuel cells.

In its diversification strategy, Plug Power is looking beyond fuel cells for industrial electric vehicles and this includes eyeing the Chinese market where investments of up to $100 billion in alternative energy technologies are expected to be made by the government in coming years.

On Thursday shares of Plug Power Inc fell by 3.45% to close the day at $2.24.

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