Fuel Cell Energy, Inc. FCEL announced the price for its underwritten public offering of nearly 34.5 shares of its common stock, at a public offering price of $6.50 per share. The offering is expected to close on or about December 3, 2020, subject to customary closing conditions. The underwriters have obtained a 30-day option to purchase up to an additional 5.17 million shares of its common stock.
The offering consists of the sale of 19.8 million shares by the company and approximately 14.7 million shares sold by certain selling shareholders, resulting in aggregate gross proceeds of $128.8 million. dollars for FuelCell and $95.5 million for the selling shareholders. However, the company will not receive any proceeds from the sale of its common stock by the selling shareholders.
FuelCell intends to use the proceeds to repay all outstanding amounts under its credit agreement with Orion Energy Partners. It may also use part of the net proceeds to pay the principal redemption price and accrued dividends on preferred stock issued by any of the company’s subsidiaries and to pay off other outstanding debts. Any remaining proceeds will be used to accelerate the development and commercialization of its solid oxide platform, as well as for project development and financing.
FuelCell continues to raise funds through stocks
This pending share offering follows FuelCell’s share offering completed between June and October 2020 to raise $177.35 million. The company intends to use the proceeds to fund business operations, including project development and expanding its presence in South Korea. It plans to tap into other Asian markets and offer high quality products.
Fuel cell technology
A gradual transition in the global energy space is quite evident, with utility operators turning to clean energy sources to generate electricity. FuelCell – a world leader in fuel cell technology – also aims to use its proprietary, state-of-the-art fuel cell platforms to generate electricity using own resources.
In addition to FuelCell, companies like Ballard Power Systems BLDP, Plug Power, Inc. SHEET and Bloom Energy Company BE also uses fuel cell technology to provide clean energy.
Zacks Ranking and Price Performance
FuelCell currently has a Zacks rank of #3 (Hold). You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Over the past three months, FuelCell shares have gained 272.5% against the sector’s 9.9% growth.
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