LATHAM, N.Y., Nov. 01, 2018 (GLOBE NEWSWIRE) -- Plug Power Inc. (NASDAQ:PLUG), today announced that it has entered into definitive agreements with certain accredited investors in connection with a $35.0 million private placement of its Series E Convertible Preferred Stock, pursuant to an exemption from the registration requirements of the Securities Act of 1933, as amended. Upon the closing of the transaction, Plug Power expects to issue to such investors 35,000 shares of the Series E Convertible Preferred Stock. The Series E Convertible Preferred Stock will be convertible into shares of common stock at a conversion price of $2.31 per share. The closing is expected to occur on or about November 2, 2018, subject to customary closing conditions.

Subject to the terms of the Certificate of Designations of the Series E Convertible Preferred Stock, commencing on May 1, 2019 and on the first trading day of each month thereafter through the eighteen month anniversary of the closing, Plug Power is required to redeem the Series E Convertible Preferred Stock in thirteen equal monthly installments of $2,693,000 each. The redemption price will be equal to the face amount of the Series E Convertible Preferred Stock being redeemed. The redemption price will be payable in cash at 105% of the face value of the shares being redeemed or, at Plug Power’s option and subject to certain conditions, in shares of Plug Power’s registered common stock valued based on a discounted VWAP formula or a combination of cash and registered common stock.

Plug Power intends to use the net proceeds of the offering for general corporate purposes, including working capital.