Ocean Power Technologies Inc (NYSE-A:OPTT) announced it has reached an agreement in principle on a sole source contract award for multiple WAM-Vs for delivery to a US government department.
Shares of OPT surged on the announcement, gaining about 65% at $0.22 in the early afternoon on Wednesday.
The provider of intelligent maritime solutions and services said the award will lead to further growth with the US government.
It builds on the recent commercial success of its vehicles and PowerBuoys for autonomous Maritime Domain Awareness, Counter Unmanned Underwater Vehicles, and Mine Counter Measure Solutions in North America, Sub-Saharan Africa, and the Middle East, OPT added.
The final contract award will be a firm-fixed-price purchase order on a noncompetitive basis.
Revenue will be recognized ratably over the course of the contract with an expected near-term delivery date.
Terms of the award have not been disclosed due to the sensitive nature of this relationship, OPT said.
"We believe this agreement is further proof that our systems form an important part of building out the future of ocean security,” OPT CEO Philipp Stratmann said in a statement.
“Using small Unmanned Surface Vehicles, like our WAM-V, is a cost-efficient force multiplier for the US government and other offshore operators. The dual-use nature of our technologies enables us to provide systems to a broad set of customers.”
- Updated with share price movement -