SLINGERLANDS, N.Y., April 28, 2025 (GLOBE NEWSWIRE) — Plug Power Inc. (NASDAQ: PLUG), a global leader in comprehensive hydrogen solutions, today announced it has signed a definitive agreement for a secured debt facility and achieved key operational and financial milestones that support its path toward profitability and long-term growth.
Plug has signed a definitive agreement for a secured debt facility with Yorkville Advisors providing for the issuance of up to $525 million of secured debentures. The facility includes an initial $210 million tranche, which will be fully funded at the initial closing and additional tranches of up to $315 million. The initial tranche is expected to close on or around May 2, 2025. With the net proceeds from the initial tranche, Plug intends to use approximately $82.5 million to retire the majority of its existing convertible debenture principal outstanding with Yorkville, which has approximately 55 million associated underlying shares given the conversion price and therefore this refinancing will reduce potential dilution.
Plug expects to report revenue of approximately $130 million to $134 million for the first quarter of 2025. Plug expects second quarter revenue in the range of $140 million to $180 million.
Plug expects net cash usage for Q1 2025 to be approximately $142 million compared to $268 million in Q1 2024. Net cash usage represents the change in unrestricted cash and cash equivalents, less proceeds from public and private offerings, net of transaction costs, and excludes principal payments of convertible instruments. Plug anticipates additional near-term reductions to net cash usage driven by hydrogen plant ramp-ups, additional cost downs, and additional price increases.
Plug ended March 31, 2025 with approximately $296 million in unrestricted cash. Given the current cash resources, the continued reductions in cash usage by leveraging working capital and reducing capex, the benefits of additional cost reduction initiatives launched in March 2025 that are expected to drive over $200 million of annual cost reductions, and the additional committed financing available under the Yorkville credit facility, the Company believes it has sufficient liquidity to support its growth in the near to mid-term. Plug has no intention of raising additional equity in 2025, underscoring its focus on disciplined capital management.
Plug has completed construction of its new 15TPD hydrogen production plant in St. Gabriel, Louisiana. Operated through the Hidrogenii joint venture with Olin Corporation, this facility strengthens Plug’s vertically integrated hydrogen network and will serve anchor customers including Amazon and Walmart.
“We’ve made the tough decisions and put the structure in place to deliver improved operating leverage and capital efficiency,” said Andy Marsh, CEO of Plug Power. “Between strengthening our balance sheet, scaling hydrogen production, and streamlining operations, we’ve taken the right steps to position Plug for long-term success in the hydrogen economy.”
