Dallas, Texas 01/23/2014 (FINANCIALSTRENDS) – FuelCell Energy Inc (NASDAQ:FCEL) announced on 17th January that it has entered into an underwriting agreement with Stifel, Nicolaus & Company. As per this agreement, the later company will act as the sole book-running manager for the planed public offering of 22 million shares common stock. The shares have been designated $0.0001 par value per share and the price for each share has been fixed at $1.25 for the public offering.
As part of the agreement, FuelCell Energy Inc (NASDAQ:FCEL) has also offered the underwriters a 30 day option to buy an additional 3.3 million share of common stock in order to provide for over allotments. Through this exercise, the $341 million market capped integrated fuel company expected to raise close to $25.5 million and is slated to close on January 23, 2014. The funds thus raised has been ear marked for initiating “project development, project financing” and as working capital.
It is interesting to note that in last week’s trading the stock had shed close to 10.7 percent after the pricing of the public offer was announced. Since then the stock price has settled at $1.5 per share which is 23 percent lower than its prior 52 week high price point. In the past 12 months, FuelCell Energy Inc (NASDAQ:FCEL) has posted sales of $187 million and accumulated net loss of $37.6 million in the same time period. For the latest quarter for which results had been announced, the firm had managed to report sales increase of 55 percent in comparison to same quarter of last year. In spite of the increase in sales, the operating and profit margins have been in the red for the past 12 months operating period.
Before the market sell off commenced last week, the stock was trading at healthy gains of 15.3 percent for the quarter and by 28 percent for the full year.