Ocean Power Technologies Inc (NYSE-A:OPTT) has entered into securities purchase agreements with institutional investors for a registered direct offering of 25 million shares of common stock at $0.40 per share, the marine energy company said on Friday.
The offering, priced at a premium to the previous day's closing price, includes common warrants to purchase up to 25 million additional shares.
The warrants carry an exercise price of $0.40 per share, become exercisable six months from issuance, and expire six years from the initial date of exercise.
Gross proceeds are expected to reach approximately $10 million before placement agent fees and other expenses. The company said it intends to use net proceeds for working capital and general corporate purposes.
The offering is expected to close by June 8.
Ocean Power Technologies provides intelligent maritime solutions and services spanning the defense and security, oil and gas, science and research, and offshore wind markets, including AI-capable maritime domain awareness systems, PowerBuoy platforms for remote power and data communications, and WAM-V unmanned surface vessels.