Ocean Power Technologies Enters Securities Purchase Agreement

Ocean Power Technologies, based in Monroe Township, New Jersey, announced on December 20, 2024, that it had entered into a securities purchase agreement (Securities Purchase Agreement) with an institutional investor. The agreement entails the issuance and sale, in one or more registered public offerings directly to the Investor, of senior convertible notes amounting to an aggregate principal sum of $54,000,000. These notes are convertible into shares of the company’s common stock at a par value of $0.001 per share.

The issuance and sale of these notes occurred on December 20, 2024, with an original principal amount of $4,000,000 issued to the Investor on the Initial Closing Date. The Securities Purchase Agreement allows for potential additional closings amounting to up to $50 million in aggregate principal amounts of additional Notes upon satisfaction of specific conditions.

The Securities Purchase Agreement includes standard representations, warranties, and covenants, along with provisions granting the Investor the right to participate in certain future equity and equity-linked transactions of the company. Notably, no conversion is permitted if it would cause the holder to own more than 4.99% or 9.99% of the outstanding Common Stock, referred to as the “Beneficial Ownership Cap.”

The Notes bear interest at a rate of 12.5% per annum, compounding quarterly. However, this rate can rise to 17.5% per annum in the case of default. The Notes mature on the eighteen-month anniversary of their respective issuance dates.

Investors have the option to convert any portion of the Notes into Common Stock, subject to the Beneficial Ownership Cap, at a conversion price based on a formula involving the closing price of the Common Stock and other factors stipulated in the agreement.

The company’s financial results for the fiscal second quarter ended October 31, 2024, revealed revenue of $2.4 million, a significant increase from the previous year. Additionally, a notable decrease in net loss to $3.9 million was reported, reflecting a 46% decrease from the prior year’s figure.

These financial results and the new Securities Purchase Agreement are intended to support the company’s strategic initiatives and drive further growth. Further details on the agreement and the financial updates can be found in the company’s recent SEC filing.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Ocean Power Technologies’s 8K filing here.

About Ocean Power Technologies

Ocean Power Technologies, Inc develops and commercializes proprietary power platforms that generate electricity by harnessing the renewable energy of ocean waves in North America, South America, Australia, and Asia. It offers PB3 PowerBuoy that generates power for use independent of the power grid in offshore locations.