ht was das f+r die zukunft bedeuten könnte. hier die auszüge aus dem seekingalpha report:
seekingalpha.com/article/...plug-power-q3-2018-takeaways?dr=1
The quarter's highlight, clearly, was the cash-flow statement as the company generated roughly $3.5 million in positive cash flow from operating activities, a substantial improvement both sequentially and year-over-year. Management reiterated its targets of achieving EBITDAS breakeven in the second half of 2018 and achieving overall positive cash flow and EBITDAS next year.
That said, I was quite surprised after discovering that the company has restarted to sell equity under its existing "At Market Issuance Sales Agreement" with FBR Capital Markets & Co. (NYSE:FBR) and not adequately disclosing the issue in its 10-Q. During the quarter, the company raised roughly $4.9 million in proceeds from equity sales while incorrectly stating that "during the nine months ended September 30, 2018, the Company did not offer any shares pursuant to the Sales Agreement".
In addition, subsequent to the end of Q3, Plug Power completed a potentially toxic $35 million private placement of convertible preferred stock. The net proceeds to the company were approximately $31.0 million after deducting placement agent fees and expenses payable by the Company. The preferred stock is convertible into shares of the Company’s common stock at a conversion price of $2.31 per share. Plug Power is required to redeem the preferred stock for cash (or, subject to certain conditions, at the Company’s option, in common stock or a combination of cash and common stock) in thirteen monthly installments of $2.693 million each from May 2019 through May 2020. Common stock used for redemptions will generally be valued based on a discounted volume weighted average price formula.
In effect, IF the company chooses to redeem the preferred equity with common stock, the buyers would actually be incentivized to short Plug Power's shares given an agreed 15% discount to the lowest value weighted average price (VWAP) over a certain measuring period. So, the lower the stock price, the more shares the company would have to allocate to the preferred equityholders.
Frankly speaking, I don't like this transaction given its toxic potential and the high implied interest rate of 10.5% p.a.
The company's conference call turned out to be very interesting as management briefly discussed several important developments: