Why Plug Power Stock Just Popped

• Plug Power CEO Andy Marsh volition clasp an AMA connected Reddit this afternoon.

• The CEO volition effort to explicate to shareholders wherefore Plug needs much money.

• 10 stocks we similar amended than Plug Power ›

Plug Power (NASDAQ: PLUG) banal popped 10% done 10:40 a.m. ET Thursday. On Tuesday, Plug Power announced its CEO, Andy Marsh, volition big an "Ask Me Anything" league connected Reddit (NYSE: RDDT) this afternoon.

The hydrogen powerfulness CEO volition reply questions up of the company's "Special Meeting" of shareholders, scheduled for Jan. 29.

Plug's Reddit sesh is conscionable hours away. Phones unfastened astatine 2 p.m.

Marsh volition reason for the company's program to amend its charter to licence issuing further shares. The institution says this is indispensable to "maintain operating flexibility, and proceed executing its concern plan." (It's indispensable due to the fact that Plug indispensable merchantability shares to rise currency to screen its continuing fund deficit.)

This connection was voted down astatine the Company's 2025 Annual Meeting, contempt 84% enactment from shareholders who voted. (The measurement failed to triumph a bulk of the outstanding shares entitled to vote, however.) Now, Plug is informing that if it cannot contented much shares, it volition request to behaviour a reverse banal divided instead.

Why indispensable Plug reverse divided its banal if not permitted to merchantability much shares? Well, a reverse divided would support the aforesaid ceiling connected the full fig of shares outstanding. But aft the split, each stock would fetch a higher terms connected the market.

Think of it this way: If I person 1 cardinal shares costing $10 each, and can't merchantability much $10 shares, I mightiness alternatively reverse divided them 1-for-10. Now I person lone 100,000 shares, but each costs $100. I besides person the close to contented and merchantability up to 900,000 new shares astatine $100 per share.

One mode oregon another, Plug needs cash. It besides needs to person shareholders to fto it get it.

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