Ocean Power Technologies Inc (NYSE-A:OPTT) announced that it received a binding letter of intent to deploy a PowerBuoy for an undisclosed customer to demonstrate the system's survivability and suitability for multidomain defense and security applications in extreme sea conditions.
This follows a teaming agreement signed last year with a major international defense contractor to provide its Merrows suite of solutions in select regions.
"We are excited to advance our collaboration and move towards deployment to demonstrate the offshore capabilities and suitability of our intelligence, surveillance, and reconnaissance solutions,” Ocean Power Technologies CEO Philipp Stratmann said in a statement.
“This step underscores our commitment to enhancing maritime security globally, and we are confident that together with our partners, we will achieve remarkable advancements in this field."
The update was welcomed by investors, who sent shares of Ocean Power Technologies almost 10% higher shortly after Wednesday’s opening bell in New York. Shares of Ocean Power Technologies were trading 5.1% higher by midday Wednesday.
Ocean Power Technologies provides intelligent maritime solutions, including Merrows for AI-driven maritime domain awareness, PowerBuoy platforms for clean power and data communications, and WAM-V unmanned surface vehicles, serving defense, security, energy, research, and offshore wind sectors.