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FuelCell Announces Share Offering with Price Below Tuesday’s Close; Shares Dive

FuelCell Energy  (FCEL) – Get Report shares plunged Wednesday, after the fuel-cell power plant maker announced a secondary share offering at a price 28% below Tuesday’s close.

The sale of 20 million shares is priced at $6.50 per share, compared to Tuesday’s close of $9.05. FuelCell stock recently traded at $6.92, down 23.54%.

But it has still soared 172% year to date amid investor mania for clean energy stocks. That frenzy is especially strong since the election victory of Joe Biden, who has expressed enthusiasm for the industry.

In its SEC filing, Danbury, Conn.-based FuelCell said it will use the proceeds of its offering to pay down debt. “We may also use a portion of the net proceeds of this offering to pay all or a portion of the principal redemption price of the issued and outstanding Series 1 preferred shares,” the company said.

“We may also use a portion of the net proceeds of this offering to accelerate the development and commercialization of our solid oxide platform and for project development, project financing, working capital support and general corporate purposes.”

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