Ocean Power Technologies to sell USD 10m in stock to Aspire Capital Fund
Deployed PB3 PowerBuoy off the coast of New Jersey.
Ocean Power Technologies (NASDAQ:OPTT), or OPT, has agreed to sell up to USD 10 million (EUR 8.8m) in common stock to Chicago-based institutional investor Aspire Capital Fund LLC over a term of 30 months.
The New Jersey-headquartered developer of the PB3 PowerBuoy wave power device plans to use the proceeds for general corporate purposes, including working capital. Its president and CEO, George Kirby, commented that the fresh agreement will help the company to beef up its financial position at a time when it is gaining critical momentum in its commercialisation programmes.
The share purchase programme will be initiated as soon as a registration statement is filed with and declared effective by the US Securities and Exchange Commission (SEC). Under the terms of the agreement, OPT will be able to choose when to sell shares to Aspire Capital as well as the exact amount, and the investor will be obliged to make the purchase.