Plug Power Inc. saw its stock decline 2.9% on Tuesday, closing at $2.04, as investors weighed a critical shareholder vote that remains undecided. Trading volume reached approximately 82.4 million shares, below the 50-day average, indicating cautious market participation.
Share Authorization Vote Remains Tight
Chief Executive Andy Marsh disclosed that roughly 49.7% of outstanding shares supported Proposal 2, which seeks to increase authorized common stock from 1.5 billion to 3 billion shares. This falls just short of the majority required for passage. The company has postponed its special meeting multiple times and now plans to reconvene on February 17 at 4:00 p.m. EST.
Marsh emphasized that approval would merely expand the company's capacity to issue shares and help avoid a reverse stock split. Support had edged up slightly from 49.40% as of February 5, with over 10 million shares switching to "yes" votes recently. The deadline for voting is February 16.
Local Incentives Adjusted
Separately, Albany County's industrial development agency modified job-creation requirements tied to $8 million in incentives for Plug Power's $125 million headquarters project in Slingerlands, New York. The agency reduced the target to 650 positions by the end of 2027, down from the original goal of 1,087 jobs by 2025. Plug Power currently employs 848 people at the site.
Kevin O'Connor, CEO of the county agency, stated the board aimed to be "supportive of Plug in hopes that they grow in the future." The company described the revised framework as "sustainable and attainable under current policy realities."
Market Implications and Risks
The shareholder vote serves as a key indicator of investor tolerance for potential dilution and future fundraising. Failure to pass Proposal 2 could force the company to consider a reverse stock split alongside a renewed request for increased share authorization. Additionally, a securities-fraud class action remains open regarding disclosures related to Department of Energy funding.
With the stock hovering near the $2 level—a price point that often attracts retail interest—further adjournments or unexpected capital structure changes could trigger significant volatility. Market attention will likely remain focused on vote tallies and capital planning updates rather than individual business developments in the near term.
