The shares of FuelCell Energy, Inc. (NASDAQ: FCEL) plummeted early after the announcement of the offering of shares

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FuelCell Energy, Inc. (Nasdaq: FCEL) stock was down -18.70% to $7.360  in the early trading on Wednesday, December 2, 2020, after the Company recently confirmed the pricing of its underwritten shares public offering of 34,518,539 shares of its common stock for $6.50 per share. The offering consists of 19,822,219 shares sold by the Company and 14,696,320 shares sold by some selling stakeholders, results in net gross profits to the Firm of $128.8 million and the selling stockholders of $95.5 million. The Corporation would not obtain any proceeds from the Sale by the selling stockholders of its common stock. The Sale, subject to normal closing terms, is scheduled to close on or around December 3, 2020. FuelCell Energy also issued a 30-day option to the underwriters to buy up to 5,177,781 additional shares of its common stock.

To repay all outstanding sums under its Credit Agreement with Orion Energy Partners Investment Agent, LLC, as Administrative Agent and Collateral Agent, and its associated lenders, FuelCell Energy plans to use the net proceeds from the Sale. A part of the net proceeds from the Sale can also be used by the Company to pay the principal redemption price on and accumulated dividends on preference shares provided by one of the subsidiaries of the Company and to repay other outstanding debts. Any remaining proceeds will be used to speed up the production and Sale of the Company’s solid oxide platform and for the development of programmes, project funding, support for working capital and general corporate purposes.

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