Plug Power (PLUG) Soars 16.7% Ahead of Corporate Amendments

We recently published 10 Stocks Delivering Double-Digit Gains Effortlessly; 4 Hit Highs. Plug Power Inc. (NASDAQ:PLUG) was one of the best performers on Thursday.

Plug Power snapped a two-day losing streak on Thursday, jumping 16.67 percent to close at $2.59 apiece, as investors loaded portfolios ahead a special shareholders’ meeting next week.

In a notice to its investors, Plug Power Inc. (NASDAQ:PLUG) said that it would hold a special meeting at 10 AM on Thursday, January 29, to vote on two company proposals, including increasing its authorized capital stock to 3 billion from 1.5 billion at present.

Plug Power Inc. (NASDAQ:PLUG) said the capital stock increase was necessary to meet its financial obligations, maintain operating flexibility, and continue executing its business plan.

Should shareholders reject the said initiative, Plug Power Inc. (NASDAQ:PLUG) said that it would implement a reverse stock split in order to create sufficient share availability to meet its financial obligations and maintain business flexibility.

It would also seek approval of the shareholders to modernize voting standards by aligning the company’s charter with current Delaware corporate law. If approved, such an amendment would allow certain future charter amendments to be approved by a majority of votes cast, where permitted under the Delaware General Corporation Law (DGCL).

“This change ensures that outcomes are determined by the stockholders who actively participate in the voting process, rather than by shares that are not voted at all. Under the Company’s current charter, shares that are not voted effectively have the same impact as votes cast against a proposal, which can prevent proposals from passing even when a clear majority of voting stockholders support them,” it said.

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Disclosure: None. This article is originally published at Insider Monkey.