Plug Power (PLUG) Drops 8% on Dilution Impact of Capital Stock Hike Plan

We precocious published 10 Big Names Stumbling Hard. Plug Power Inc. (NASDAQ:PLUG) was 1 of the worst performers connected Monday.

Plug Power dropped its stock prices by 8 percent connected Monday to adjacent astatine $2.3 apiece arsenic investors digested the imaginable dilution interaction of its connection to treble its superior stock.

In a announcement to its investors past week, Plug Power Inc. (NASDAQ:PLUG) said that it is readying to rise its authorized superior banal to 3 cardinal from 1.5 cardinal astatine contiguous to conscionable its fiscal obligations, support operating flexibility, and proceed executing its concern plan.

Should shareholders cull the initiative, Plug Power Inc. (NASDAQ:PLUG) would instrumentality a reverse banal divided successful bid to create capable stock availability to conscionable its fiscal obligations and maintain business flexibility.

Photo by Tommy Krombacher connected Unsplash

Apart from the superior banal hike, it would besides question support of the shareholders to modernize voting standards that would let definite aboriginal charter amendments to beryllium approved by a bulk of votes cast, wherever permitted nether the Delaware General Corporation Law (DGCL).

“This alteration ensures that outcomes are determined by the stockholders who actively enactment successful the voting process, alternatively than by shares that are not voted astatine all. Under the Company’s existent charter, shares that are not voted efficaciously person the aforesaid interaction arsenic votes formed against a proposal, which tin forestall proposals from passing adjacent erstwhile a wide bulk of voting stockholders enactment them,” Plug Power Inc. (NASDAQ:PLUG) said.

A peculiar gathering is acceptable to beryllium held astatine 10 AM connected Thursday, January 29, to ballot connected some proposals.

While we admit the imaginable of PLUG arsenic an investment, our condemnation lies successful the content that immoderate AI stocks clasp greater committedness for delivering higher returns and person constricted downside risk. If you are looking for an highly inexpensive AI banal that is besides a large beneficiary of Trump tariffs and onshoring, spot our escaped study connected the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double successful 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This nonfiction is primitively published at Insider Monkey.