Plug Power revealed in its filing with the Securities and Exchange Commission (SEC) Monday that it was in talks to acquire an unnamed company in Europe. The target company develops technology to produce industrial gas supplies. The Latham, New York-based company said the acquisition and integration of the European firm would help advance its hydrogen fueling strategy.

Plug Power
Image Credit: Plug Power / YouTube video screenshot

Plug Power may shell out €10 million for the European firm

According to the filing, the purchase price will be about €10 million. Plug Power was required to disclose the business details before new stock offerings. The fuel cell maker has priced a registered offering of its common stock and a registered offering of its Series D convertible preferred stock between $1.25 and $1.55 per share. Both include warrants to purchase common stock of the company.

The offerings are expected to close on December 22, subject to customary closing conditions. All the securities in both offerings were sold to an institutional investor. The fuel cell company was looking to raise approximately $30 million in stock offerings. Plug Power plans to use the proceeds towards the prepayment of outstanding debt and related amount with its lender Hercules Capital.

Plug Power inks deal with two Chinese companies

Other details disclosed in the SEC documents include the company’s cash position and potential loan opportunities. Plug Power has $19.1 million in unrestricted cash and $52.9 million in restricted cash. The company is in talks to raise $25 million in loan. The Latham-based firm has been seeking more capital to expand its geographical reach and explore new technologies.

Last month, Plug Power signed a deal with two Chinese companies to develop new fuel cell technologies for industrial electric vehicles in China. It will work with the Chinese firms to develop EVs powered by the US company’s hybrid fuel cell engine systems. They plan to deliver two delivery truck prototypes by March 2017, followed by the delivery of 500 vehicles within another year in the Shanxi province of China. Plug Power CEO Andy Marsh said China was on track to become the world’s largest fuel cell market within 2-3 years.

 Diversifying revenue sources

Plug Power is also working to diversify its revenue stream by exploring new applications for its technology beyond material handling, reports the Albany Business Review. The company is reportedly testing fuel cell-powered delivery vehicles in Albany. The testing involves FedEx delivery trucks with range extenders powered by the Latham-based company’s hydrogen technology.

Plug Power has never earned profits in its history. During the third quarter, the company posted a loss of $13.4 million. It aims to break even by next year. Its shares have declined more than 36% year-to-date.