Plug -Power scouts as new financing, cost cuts increase trust in the turnaround plan -plug electricity (Nasdaq: plug)

Plug Power Inc. PLUG Discluded on Monday that it signed a contract for a secure debt facility and has achieved important operational and financial milestones that support its way to profitability and long -term growth. The share price was won after the update.

Plug has concluded a contract for a secure debt facility with advisors from Yorkville, which enable the issue of up to 525 million US dollars of secure bonds.

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The facility includes a first tranche of 210 million US dollars, which is fully financed for the first time, as well as additional tranches of up to 315 million dollars. The initial tranche will probably close by May 2, 2025.

With the net proceeds from the initial tranche, Plug intends to use around 82.5 million US dollars in order to emerge the majority of its existing convertible debt bereaved with Yorkville.

Plug will report its results in the first quarter of 2025 in early May. Plug expects sales of around USD 130 to 134 million to be expelled for the first quarter of 2025 compared to the analyst consensus of USD 131.61 million. Plug expects sales of $ 140 to $ 180 million compared to the analyst consensus of $ 160.20 million in the second quarter.

In the first quarter, Plug expects a net benefit use of approximately $ 142 million compared to $ 268 million a year ago. The company ended on March 31, 2025 with around 296 million US dollars of unrestricted cash.

Plug completed the construction of its new 15 TPD hydrogen production work in St. Gabriel, Louisiana. This facility, which is operated by the Joint Venture by Hidrogenii Joint Venture with the Olin Corporation Amazon.com Inc Amzn And Walmart Inc WMT.

Plug has taken decisive measures to reduce its operating cost base and make changes in the first quarter, which will probably lead over $ 200 million in annualized running level of over $ 200 million. These cost reduction measures, which have been largely completed, include the organizational realignment and a company broader focus on the efficiency of the production and the supply chain. The full effects of these cost savings will be reflected in the upcoming quarters.

The plug-power share has dropped over 65% for a year after the analysts lowered their price targets for the stock because they did not reach the quarterly sales and EPS consensus.

Price action: The Plug share increased by 12.0% for the last check on Monday by 12.0% by $ 0.9056.

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