Plug Power - Plug Power Stock Falls on Analyst Note

Plug Power Stock Falls on Analyst Note
Plug Power Shares Drop After Analyst Note Calls for More Details on $217 Million Investment
NEW YORK (AP) -- Shares of energy products provider Plug Power Inc. dropped Wednesday after an analyst awaited clarification on how funds from a $217 million investment by two Russian companies would be used.
Investment firm Interros and nickel and palladium producer Norilsk Nickel said Tuesday it would give $217 million cash to Power Plug in exchange for shares of Class B Capital Stock which are convertible into 39.5 million shares of common stock. The purchase price per share is $5.50. After the investment closes, Plug Power will have about $285 million in cash and marketable securities.
The investment is being made through Smart Hydrogen, a joint venture of the principal Interros investors and Norilsk Nickel, which was formed to participate in the global hydrogen economy.
"Although we note the tremendous vote of confidence implied by the investment, we remain on the investment sideline and await details on use of funds, cost reductions, market adoption, toehold telecom orders and overall market maturity," Pacific Growth Equities analyst J. Michael Horwitz said in a note to clients.
Horwitz reiterated his "Neutral" rating, saying the firm will be looking for positive investment opportunities and/or telecommunication deals and new distributors from Plug Power.
Shares of Plug Power slipped 19 cents, or 3.2 percent, to $5.79 in afternoon trading on the Nasdaq.