Plug Power's Stock Rockets On Heavy Volume After Supply Agreement With Amazon

By Tomi Kilgore Markets MarketWatch Pulse

Shares of Plug Power Inc. soared 72% toward a one-year high in very active premarket trade Wednesday, after the fuel cell company announced a supply agreement with Amazon.com Inc. , which includes a potential equity investment. Volume of 8.3 million shares makes the stock the most actively traded ahead of the open, and is already above the full-day average of 6.1 million shares. As part of the agreement, Amazon will use Plug Power fuel cells and hydrogen technology in its fulfillment network, including using the GenKey technology to power industrial equipment such as forklifts. Plug Power said revenue associated with the agreement is expected to be around $70 million. Separately, the company granted Amazon warrants to buy up to 55.3 million common shares at an exercise price of $1.1893. Vesting of the warrants is subject to payments totaling $600 million made by Amazon in connection with the purchase of goods and services. Plug's stock has gained 8.3% year to date through Tuesday, while the S&P 500 has tacked on 5.4%.

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