France-based industrial gases company Air Liquide has invested $6.5m in Nasdaq-listed hydrogen fuel cell maker Plug Power, bringing the total amount raised by Plug Power so far in 2013 to $12m.
Air Liquide’s investment will be used to provide liquidity. Plug Power also sees the investment as an endorsement of its strategy to grow its business of hydrogen fuel cells for forklift trucks and other markets.
Air Liquide’s investment comprises $2.6m invested in convertible preferred stock with a 60% conversion premium to market and an 8% coupon. As part of the stock purchase, an Air Liquide representative will join Plug Power’s board.
Air Liquide also purchased from Plug Power a 25% ownership interest in HyPulsion (a joint venture between Axane, an Air Liquide subsidiary, and Plug Power to market hydrogen fuel cells into European markets) for $3.3m: Plug Power now owns 20% of HyPulsion, with the right to purchase a majority interest in 2018. The companies also signed a $0.7m engineering service contract to accelerate the development of the European market for hydrogen forklift.
Since the deal, Plug Power announced an operating loss for the first quarter of 2013 of $6.4m, compared to an operating loss of $7.8m for the first quarter 2012.