Plug Power Inc ( PLUG ) shares are tumbling in Tuesday’s after-hours session after the hydrogen solutions company announced a private offering.

PLUG stock is moving in positive territory. Check out the latest moves here.

What To Know: After the market close on Tuesday, Plug announced plans to offer $375 million of convertible senior notes due 2033 in a private offering to institutional investors.

The company expects to grant the initial purchasers a 13-day window to purchase up to an additional $56.25 million of the notes.

Plug said it intends to use $243 million of the net proceeds to repay the outstanding interest on its 15% secured debentures, as well as the related termination fee. The company plans to use the remaining proceeds to fund the repurchase of all or a portion of its existing 7% convertible senior notes due 2026, as well as for working capital and other general corporate purposes.

Plug Power ( PLUG ) had approximately $166 million of unrestricted cash and cash equivalents as of Sept. 30 after using approximately $90 million in operating activities during the third quarter. Subsequent to the quarter’s end, the company completed a capital raise for gross proceeds of approximately $370 million through the exercise of existing investor warrants.

PLUG Analysis: Plug Power ( PLUG ) stock is trading within its 52-week range of 69 cents to $4.58, reflecting significant volatility and investor sentiment shifts. Year-to-date, Plug shares have seen a decline of 20%, indicating a challenging environment for the company as it navigates market pressures.

From a technical perspective, Plug is currently trading approximately 38% below its 50-day moving average of $2.72, suggesting a bearish trend in the short term.  With the Relative Strength Index (RSI) at 35.70, the stock is approaching oversold territory, which could signal a potential rebound if buying interest returns.

PLUG Price Action: Plug Power ( PLUG ) shares were down 20.09% in after-hours, trading at $1.71 at the time of publication on Tuesday, according to Benzinga Pro.

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Image: courtesy of Plug Power ( PLUG ).