Plug Power Company (NASDAQ: PLUG) shares fell more than 5% in regular trading on Monday.
what’s happening: Although the company announced the news the day it was working with it, the stock price fell. Chart industries co., ltd. (New York Stock Exchange: GTLS) and Baker Hughes (NYSE: BKR) became a “cornerstone investor” and established a “unique” new type of pure clean hydrogen dedicated private infrastructure fund called “FievenT Hydrogen Fund”.
According to Plug Power’s statement, the fund will be committed to large-scale delivery of clean hydrogen infrastructure projects.
Although Plug Power said it plans to invest 1
The statement said that the fund will “specially fund projects in the production, storage and distribution of clean hydrogen.”
According to Plug Power, FiveT will be priced in euros and only available to qualified and verified investors. Its goal is to raise 1 billion euros ($1.18 billion) from financial and industrial investors.
The initial investment accounts for only 26% of the fund-raising target specified by the fund.
Why it matters: Last week, Plug Power’s share price rose 10.6% after the hydrogen solutions company announced plans to cooperate with Brookfield to build a green hydrogen production plant. Renewable partner LP (New York Stock Exchange: BEP) and Brookfield Renewable Company (New York Stock Exchange: BEPC).
Price action: On Monday, Plug Power shares fell 5.16% to $33.44, and rose 0.18% in after-hours trading.
Benzinga’s actions: The fact that FiveT will provide funding for projects or potential customers raises concerns about the demand for clean hydrogen products, which may be a potential reason why investors are not so keen to announce the news.
©2021 Benzinga.com. Benzinga does not provide investment advice. all rights reserved.