Shares of Plug Power Inc. surged nearly 12% on Friday, closing at $2.08, as the hydrogen fuel cell company heads into a pivotal shareholder meeting later this month. The rally provided a late-week boost for the Nasdaq-listed firm, with trading volume reaching 108.8 million shares, significantly above its 50-day average.
Shareholder Vote Looms
Investor attention is now focused on a reconvened special meeting scheduled for February 17, where shareholders will vote again on two charter amendments that failed to pass earlier this month. The primary proposal seeks to double the company's authorized common shares from 1.5 billion to 3 billion, a move management describes as providing flexibility for future financing.
In a January statement, CEO Andy Marsh indicated that if the share increase isn't approved, the company would proceed with a reverse stock split instead, calling the share authorization proposal a "more measured" approach following investor feedback. The company has acknowledged challenges in securing votes from European shareholders, with Marsh noting they are "really close" to obtaining necessary approvals.
Legal Headlines Emerge
Adding to the company's challenges, law firm Bleichmar Fonti & Auld announced over the weekend that a securities class action has been filed against Plug Power and certain executives in federal court in New York. The firm has set April 3 as the deadline for investors to seek lead-plaintiff status in the case.
The legal development introduces additional uncertainty as traders assess how Monday's session will respond to the combination of proxy-vote pressure and new litigation. Plug Power remains approximately 55% below its 52-week high, reflecting ongoing investor concerns about dilution and the company's financial strategy.
While increasing authorized shares doesn't automatically mean new shares will be issued—it merely raises the legal ceiling—failure to secure approval could force the company toward a reverse split, which typically consolidates existing shares to boost the per-share price. Either path carries implications for existing shareholders concerned about potential dilution.
The broader market also saw gains Friday, with the Nasdaq Composite rising 2.18% and the Dow Jones Industrial Average climbing 2.47%. Among Plug Power's peers, Ballard Power Systems rose 5.91%, while Air Products & Chemicals slipped 0.13%.