Hydrogenics Corporation (USA) (NASDAQ:HYGS) announced the pricing of its previously announced underwritten public offering of 2,129,031 common shares (the “Offering”) at a price of $7.75 per share. Net proceeds to the Company from the Offering are expected to be approximately $15,276,000, after deducting underwriting commissions and other expenses related to the Offering and assuming no exercise of the underwriters’ overallotment option. Based upon pricing and investor demand, the Company elected to increase the size of the Offering from the previously announced $15 million to $16.5 million. The Company has also granted to the underwriters a 30-day option to purchase up to an additional 319,354 common shares to cover overallotments in connection with the Offering.
Craig-Hallum Capital Group LLC is acting as sole book-running manager for the Offering. Roth Capital Partners is acting as co-manager for the Offering.
The Offering is expected to close on or about December 16, 2015, subject to customary closing conditions including, but not limited to, the receipt of all necessary regulatory approvals, including the approvals of the Toronto Stock Exchange and the NASDAQ Global Market.
The Company intends to use its net proceeds from the Offering primarily for general corporate purposes, including to support any negative cash flows from operating activities. (Original Source)
Shares of Hydrogenics closed yesterday at $7.78, down $0.85 or -9.85%. HYGS has a 1-year high of $17.55 and a 1-year low of $7.32. The stock’s 50-day moving average is $10.49 and its 200-day moving average is $9.58.
On the ratings front, Hydrogenics has been the subject of a number of recent research reports. In a report issued on December 2, Cowen analyst Jeff Osborne initiated coverage with a Hold rating on HYGS and a price target of $13, which implies an upside of 67.1% from current levels. Separately, on November 16, Roth Capital’s Matt Koranda reiterated a Buy rating on the stock and has a price target of $13.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Jeff Osborne and Matt Koranda have a total average return of -15.7% and -0.3% respectively. Osborne has a success rate of 41.1% and is ranked #3562 out of 3638 analysts, while Koranda has a success rate of 45.7% and is ranked #2439.
Hydrogenics Corp along with its subsidiaries, designs, develops and manufactures hydrogen generation and fuel cell products based on water electrolysis technology and proton exchange membrane technology.