UPDATE 1-FuelCell Energy to sell $24 mln of shares at discount

* To sell 6.7 mln shrs at $3.59 each

* Offer price represents 18 pct discount to Monday's close

* Shares fall as much as 16 pct

June 16 (Reuters) - FuelCell Energy Inc (FCEL.O) said it would sell 6.7 million shares of its common stock at $3.59 apiece, an 18 percent discount to the stock's Monday closing price.

Shares of the company fell as much as 16 percent to a low of $3.67, before recouping some losses to trade down 52 cents at $3.87 Tuesday morning. The stock was among the highest percentage losers on Nasdaq.

The company, which manufactures fuel-cell power plants for electric power generation, expects to use net proceeds from the offering for product development, project financing, expansion of manufacturing capacity and general corporate purposes.

Canaccord Adams Inc and Lazard Capital Markets LLC acted as placement agents for the offering, FuelCell said.

Earlier this month, the company reported a narrower second-quarter loss and said it had cut operating costs and cash use in February, including a 6 percent workforce reduction and a salary freeze for all but production-level employees. [ID:BNG388335] (Reporting by Adveith Nair in Bangalore; Editing by Anne Pallivathuckal)