Plug Power - Analysis of Recent 8-K Filing - Acquisition of ACT

I wanted to break down the recent 8-K SEC filing by PLUG (Plug Power) and see how it might impact the stock price moving forward. Essentially, PLUG has entered into an agreement to acquire ACT and the transaction is expected to close before the end of the year. The acquisition will provide PLUG with added Hydrogen delivery network, and storage capabilities – essentially a great strategic acquisition. Let’s jump in and see what this means. What is an 8-K and Why is it Important? (If you already know what an 8-k is, just ignore this part) Form 8-K is used to update investors and the SEC about a significant event affecting a company. The stock price of the company is often affected by 8-K triggering events, but whether the price goes up or down depends on whether the form contains good or bad news. Naturally, less significant news will have less of a significant impact on stock prices. Link to PLUG SEC 8-K Filing Item 7.01 Regulation FD Disclosure. On October 14, 2021, Plug Power Inc. (the “Company”) issued a press release announcing that the Company and Applied Cryo Technologies (“ACT”), a leading provider of technology, equipment and services for the transportation, storage, and distribution of liquified hydrogen, oxygen, argon, nitrogen and other cryogenic gases, have entered into a definitive agreement for the acquisition of ACT by the Company. The transaction is expected to close during the fourth quarter of 2021 and is subject to customary closing conditions, including receipt of all approvals or the termination or expiration of all waiting periods required under applicable antitrust laws. A copy of the press release is furnished herewith as Exhibit 99.1. PLUG is acquiring ACT because ACT has great cryogenic technologies and has been in the industry since 2021. It is a strategic acquisition for PLUG and gives them expanded deliver and storage capabilities. You should check out their website here - a ton of great info about their technology The acquisition of ACT will provide Plug Power with a host of efficiencies and capabilities, including: Liquid hydrogen delivery network and fleet. Liquid hydrogen storage; and Hydrogen mobility fueling, which is particularly important for ports. Quote from PLUG CEO With ACT’s cryogenic technologies, Plug Power will enhance its ability to deliver and store green hydrogen from our growing footprint of plants throughout the world,” said Andy Marsh, CEO for Plug Power. “ACT has been delivering excellence to the industrial gas and energy markets since 2012, and we’re thrilled to welcome their incredible team to the Plug Power family. In the months ahead, we’ll work together to rapidly scale ACT’s cryogenic solutions and capabilities throughout the green hydrogen ecosystem, bringing us one step closer to a decarbonized future What does the 8-K Filing mean for PLUG? In summary, I think this a great acquisition by PLUG. ACT provides ready to go assets and strategic benefit to capture more of the Hydrogen market. ACT’s existing deliver network, fleet, storage, and mobility fueling are all significant assets that fit well with PLUG. We won’t know the details of the transaction until it is complete, but I think this is a solid move by PLUG and makes sense. If you’re a PLUG holder this is exciting. Also, there is a great piece of Due Diligence for PLUG that I would recommend reading. $PLUG- Stock Analysis And How It Is Impacted By Fuel Cells' Promising Future

Plug Power - Analysis of Recent 8-K Filing - Acquisition of ACT

Stuart Mooney

10:17 AM

Oct 14 2021 (Thu)

Newsletter

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Image credit: utradea.com - Plug Power $PLUG - 8-K Filing Analysis

I wanted to break down the recent 8-K SEC filing by PLUG (Plug Power) and see how it might impact the stock price moving forward.

Essentially, PLUG has entered into an agreement to acquire ACT and the transaction is expected to close before the end of the year. The acquisition will provide PLUG with added Hydrogen delivery network, and storage capabilities – essentially a great strategic acquisition. Let’s jump in and see what this means.

 

What is an 8-K and Why is it Important?

(If you already know what an 8-k is, just ignore this part)

Form 8-K is used to update investors and the SEC about a significant event affecting a company. The stock price of the company is often affected by 8-K triggering events, but whether the price goes up or down depends on whether the form contains good or bad news. Naturally, less significant news will have less of a significant impact on stock prices.

 

Link to PLUG SEC 8-K Filing

Item 7.01 Regulation FD Disclosure.

On October 14, 2021, Plug Power Inc. (the “Company”) issued a press release announcing that the Company and Applied Cryo Technologies (“ACT”), a leading provider of technology, equipment and services for the transportation, storage, and distribution of liquified hydrogen, oxygen, argon, nitrogen and other cryogenic gases, have entered into a definitive agreement for the acquisition of ACT by the Company. The transaction is expected to close during the fourth quarter of 2021 and is subject to customary closing conditions, including receipt of all approvals or the termination or expiration of all waiting periods required under applicable antitrust laws. A copy of the press release is furnished herewith as Exhibit 99.1.

PLUG is acquiring ACT because ACT has great cryogenic technologies and has been in the industry since 2021. It is a strategic acquisition for PLUG and gives them expanded deliver and storage capabilities. You should check out their website here - a ton of great info about their technology

The acquisition of ACT will provide Plug Power with a host of efficiencies and capabilities, including:

  • Liquid hydrogen delivery network and fleet.
  • Liquid hydrogen storage; and
  • Hydrogen mobility fueling, which is particularly important for ports.

Quote from PLUG CEO

With ACT’s cryogenic technologies, Plug Power will enhance its ability to deliver and store green hydrogen from our growing footprint of plants throughout the world,” said Andy Marsh, CEO for Plug Power. “ACT has been delivering excellence to the industrial gas and energy markets since 2012, and we’re thrilled to welcome their incredible team to the Plug Power family. In the months ahead, we’ll work together to rapidly scale ACT’s cryogenic solutions and capabilities throughout the green hydrogen ecosystem, bringing us one step closer to a decarbonized future

 

What does the 8-K Filing mean for PLUG?

In summary, I think this a great acquisition by PLUG. ACT provides ready to go assets and strategic benefit to capture more of the Hydrogen market. ACT’s existing deliver network, fleet, storage, and mobility fueling are all significant assets that fit well with PLUG. We won’t know the details of the transaction until it is complete, but I think this is a solid move by PLUG and makes sense. If you’re a PLUG holder this is exciting.

Also, there is a great piece of Due Diligence for PLUG that I would recommend reading. $PLUG- Stock Analysis And How It Is Impacted By Fuel Cells' Promising Future

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