Shareholder Vote Puts Plug Power at a Critical Juncture

Plug Power US72919P2020

Investors in hydrogen technology firm Plug Power face a pivotal decision this week. The company's management has called a special meeting for Thursday, January 29, seeking approval to significantly increase the number of authorized shares. This comes amid operational progress in Europe and a stark financial warning: should the proposal fail, the company has signaled it will resort to a reverse stock split—a move often viewed with caution by the market.

Despite its financial challenges, Plug Power has announced a significant operational milestone. In Portugal, the installation of a 100-megawatt electrolyzer system at the Galp refinery has been completed. This project ranks among the largest of its kind on the European continent.

Once operational in the coming months, the facility is projected to produce up to 15,000 tons of green hydrogen annually. It is expected to replace approximately 20% of the refinery's gray hydrogen consumption, leading to planned carbon dioxide emission reductions of about 110,000 tons per year.

The High-Stakes Shareholder Vote

The core agenda item for the upcoming meeting is a proposal to double the count of authorized common shares from 1.5 billion to 3.0 billion. Company executives are urgently encouraging shareholder participation due to a formidable voting threshold.

The issue stems from the company's current bylaws. During the 2025 annual meeting, roughly 84% of votes cast were in favor of a similar increase. However, the measure failed because it required approval from a majority of all outstanding shares, not just the votes represented at the meeting.

To prevent future deadlocks, the meeting will also consider modernizing the voting standards to align with prevailing Delaware law, where the company is incorporated.

The consequences of a second rejection are clear. Plug Power has stated it will execute a reverse stock split if the share increase is not approved, a strategic maneuver typically interpreted as a sign of distress.

Market Volatility Reflects Underlying Uncertainty

The stock market continues to reflect the company's precarious position. Plug Power shares are currently trading at $2.33, demonstrating persistent high volatility with an annualized measure of around 67%. The current price sits approximately 33% below its 52-week high of $3.51.

Following Thursday's decisive vote, investor attention will swiftly turn to the company's financial health. Plug Power is scheduled to release its fourth-quarter 2025 earnings report on March 2, 2026. These results will provide crucial evidence on whether the company's operational scaling can generate sufficient revenue to support its intended capital structure.