Ocean Power Technologies Announces Pricing of $10,000,000 Registered Direct Offering Priced At A Premium to Market

Rhea-AI Summary

Ocean Power Technologies (NYSE American: OPTT) priced a registered direct offering with institutional investors for 25,000,000 common shares and accompanying warrants to purchase up to 25,000,000 shares at a combined price of $0.40, a premium to the prior close.

Gross proceeds are expected to be about $10 million, before fees, with net proceeds earmarked for working capital and general corporate purposes. Warrants become exercisable six months after issuance at $0.40 and expire six years from initial exercise. Closing is expected around June 8, 2026, subject to customary conditions, with Ladenburg Thalmann as exclusive placement agent.

Positive

• Raises approximately $10 million in gross proceeds for the company
• Offering priced at a premium to the prior day’s closing share price
• Additional potential capital from 25,000,000 warrants exercisable at $0.40 per share
• Net proceeds designated for working capital and general corporate purposes

Negative

• Issuance of 25,000,000 new common shares creates meaningful shareholder dilution
• Up to 25,000,000 additional shares may be issued upon warrant exercise, adding further dilution risk

Argus Jun 5 session

-24.92% close to close Open Argus

Details

News Market Reaction – OPTT

On Jun 5, the day this news came out, OPTT closed 24.92% below the previous close.

Data tracked by StockTitan Argus for the Jun 5 session.

Market Context

On Jun 5, the day this news came out, the stock closed 24.9% below the previous close. A negative re...

Analysis

On Jun 5, the day this news came out, the stock closed 24.9% below the previous close. A negative reaction despite the offering being priced at a premium to the recent $0.388 share level would fit concerns about dilution and prior going-concern language. The $10,000,000 raise and associated 25,000,000 warrants expand the potential share count on top of earlier convertible notes. Past news has sometimes seen downside even on positive contracts, suggesting sensitivity to balance sheet and financing structure shifts.

Key Figures

Registered direct offering size: $10,000,000 Shares offered: 25,000,000 shares Warrants issued: 25,000,000 warrants +5 more

Registered direct offering size

$10,000,000

Gross proceeds before fees and expenses

Shares offered

25,000,000 shares

Common stock sold in registered direct offering

Warrants issued

25,000,000 warrants

Common warrants accompanying offered shares

Offering price

$0.40 per share and warrant

Combined purchase price, premium to prior close

Warrant exercise price

$0.40 per share

Exercise price for common warrants

Warrant term

6 years

Expiration from initial exercise date

Warrant exercisability delay

6 months

Time after issuance before warrants become exercisable

Expected closing date

June 8, 2026

Anticipated closing of registered direct offering

Historical Context

5 past events · Latest: Jun 01

5 events

1. Jun 01

   Defense engagement expansion

   24h Move

   +3.5%

   Announced expanded international defense engagements across Europe using PowerBuoy and WAM-V.

2. May 18

   Deployment footprint growth

   24h Move

   -6.0%

   Reported expanded U.S. and international deployments of PowerBuoy and WAM-V systems.

3. May 12

   DHS deployment update

   24h Move

   -3.0%

   Detailed three PowerBuoy systems streaming offshore data for DHS maritime surveillance.

4. May 07

   Autonomous charging demo

   24h Move

   -1.9%

   Showcased autonomous docking, charging, and redeployment for WAM-V maritime drones.

5. Apr 13

   First DHS PowerBuoy

   24h Move

   +5.3%

   Announced first PowerBuoy deployment under a DHS contract supporting maritime awareness.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

registered direct offering, common warrants, shelf registration statement, form s-3, +1 more

5 terms

registered direct offering financial

"shares of the Company’s common stock together with common warrants ... in a registered direct offering"

A registered direct offering is a way for a company to sell new shares of its stock directly to select investors with regulatory approval. This method allows the company to raise funds quickly and efficiently without needing a public auction, similar to offering exclusive access to a limited number of buyers. For investors, it often provides an opportunity to purchase shares at a favorable price, while giving the company immediate access to capital.

common warrants financial

"common warrants to purchase up to 25,000,000 shares of common stock"

A common warrant is a tradable instrument that gives its holder the right to buy a company’s common shares at a fixed price within a set time period, similar to a coupon that can be redeemed later to purchase stock. Investors care because exercising warrants can boost potential gains if the stock rises, but it can also dilute existing shareholders by increasing the number of shares outstanding, which can lower per-share value.

shelf registration statement regulatory

"The securities described above are being offered pursuant to a shelf registration statement on Form S-3"

A shelf registration statement is a document a company files with regulators that allows it to sell shares or bonds quickly when it’s a good time to raise money. It’s like having a pre-approved plan ready so the company can act fast without going through lengthy paperwork each time they want to sell, making fundraising more flexible.

form s-3 regulatory

"shelf registration statement on Form S-3 (File No. 333-275843, which was declared effective"

Form S-3 is a legal document companies use to register their stock sales with the government, making it easier and faster for them to raise money by selling shares to investors. It’s like having a pre-approved shopping list that lets a company quickly sell new shares when they need funds, without going through a lengthy approval process each time.

prospectus supplement regulatory

"A prospectus supplement describing the terms of the proposed offering will be filed with the SEC"

A prospectus supplement is an additional document provided alongside a company's main offering details, offering updated or extra information about a specific financial product being sold. It helps investors understand the latest terms, risks, and details of the investment, similar to how an update or revision clarifies or expands on original instructions, ensuring they have current and complete information before making a decision.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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MONROE TOWNSHIP, N.J., June 05, 2026 (GLOBE NEWSWIRE) -- Ocean Power Technologies, Inc. (NYSE American: OPTT) (“OPT” or the “Company”), today announced that it has entered into securities purchase agreements with certain institutional investors for the purchase and sale of 25,000,000 shares of the Company’s common stock together with common warrants to purchase up to 25,000,000 shares of common stock in a registered direct offering at a combined purchase price of $0.40 per share of common stock and accompanying common warrant. The offering was priced at a premium to yesterday’s closing price. The common warrants will be exercisable on the six month anniversary of the date of issuance at an exercise price of $0.40 per share and will expire 6 years from the initial date of exercise.

Ladenburg Thalmann & Co. Inc. is acting as the exclusive placement agent for the offering.

The closing of the registered direct offering is expected to occur on or about June 8, 2026, subject to the satisfaction of customary closing conditions.

The gross proceeds to the Company from the registered direct offering, before deducting the placement agent fees and other offering expenses payable by the Company, are expected to be approximately $10.0 million. The Company intends to use the net proceeds from the offering for working capital and for general corporate purposes.

The securities described above are being offered pursuant to a shelf registration statement on Form S-3 (File No. 333-275843, which was declared effective by the United States Securities and Exchange Commission (“SEC”) on December 12, 2023. A prospectus supplement describing the terms of the proposed offering will be filed with the SEC and will be available on the SEC’s website at http://www.sec.gov . Electronic copies of the prospectus supplement and accompanying base prospectus may be obtained, when available, by contacting Ladenburg Thalmann & Co. Inc., Prospectus Department, 640 Fifth Avenue, 4th Floor, New York, New York 10019 or by email at prospectus@ladenburg.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described therein, nor shall there be any sales of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

About Ocean Power Technologies, Inc.

OPT provides intelligent maritime solutions and services that enable safer, cleaner, and more productive ocean operations for the defense and security, oil and gas, science and research, and offshore wind markets, including Merrows™, which provides AI capable seamless integration of Maritime Domain Awareness Systems across platforms. OPT’s PowerBuoy® platforms provide clean and reliable electric power and real-time data communications for remote maritime and subsea applications. OPT also provides WAM-V® unmanned surface vessels (USVs) and marine robotics services. The Company’s headquarters are in Monroe Township, New Jersey, with an additional office in Richmond, California.

Cautionary Statement Regarding Forward-Looking Statements

This release may contain "forward-looking statements" that are within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified by certain words or phrases such as "may", "will", "aim", "will likely result", "believe", "expect", "will continue", "anticipate", "estimate", "intend", "plan", "contemplate", "seek to", "future", "objective", "goal", "project", "should", "will pursue" and similar expressions or variations of such expressions. The forward-looking statements included in this press release include statements regarding the anticipated closing of the registered direct offering and the use of proceeds. These forward-looking statements reflect the Company's current expectations about its future plans and performance. These forward-looking statements rely on a number of assumptions and estimates which could be inaccurate and which are subject to risks and uncertainties. Actual results could vary materially from those anticipated or expressed in any forward-looking statement made by the Company. Please refer to the prospectus and the Company’s most recent Form 10-K and subsequent filings with the SEC on Forms 10-Q and Form 8-K for a further discussion of these risks and uncertainties. The Company disclaims any obligation or intent to update the forward-looking statements in order to reflect events or circumstances after the date of this release.

Investors: 203-561-6945 or investorrelations@oceanpowertech.com

Media: 609-730-0400 x402 or MediaRelations@oceanpowertech.com
        

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Ocean Power Technologies (OPTT) announce about its June 2026 stock offering?

Ocean Power Technologies announced a registered direct offering of 25,000,000 common shares plus warrants, raising about $10 million before fees. According to the company, shares and warrants are priced at a combined $0.40, a premium to the prior closing price.

How much capital will Ocean Power Technologies (OPTT) raise from the June 2026 offering?

Ocean Power Technologies expects gross proceeds of approximately $10 million from this registered direct offering. According to the company, this figure is before placement agent fees and other offering expenses, with net proceeds intended for working capital and general corporate purposes.

At what price is the Ocean Power Technologies (OPTT) June 2026 offering being sold?

The offering is priced at a combined $0.40 per common share and accompanying warrant. According to the company, this pricing represents a premium to the previous trading day’s closing price, and the warrants carry the same $0.40 exercise price per share.

What are the terms of the Ocean Power Technologies (OPTT) warrants issued in June 2026?

The common warrants allow purchase of up to 25,000,000 OPTT shares at $0.40 each. According to the company, they become exercisable six months after issuance and expire six years from the initial exercise date, potentially providing additional future capital.

When is the Ocean Power Technologies (OPTT) June 2026 offering expected to close?

The registered direct offering is expected to close on or about June 8, 2026. According to the company, completion is subject to satisfaction of customary closing conditions, which are typical for this type of capital markets transaction.

How will Ocean Power Technologies (OPTT) use proceeds from the June 2026 stock and warrant sale?

Ocean Power Technologies plans to use net proceeds for working capital and general corporate purposes. According to the company, funds from the approximately $10 million gross raise will support ongoing operations rather than a specified acquisition or targeted project.

What does the June 2026 OPTT registered direct offering mean for existing shareholders?

Existing shareholders will experience dilution from 25,000,000 new shares and potential future warrant exercises. According to the company, the raised capital of about $10 million is intended to strengthen liquidity while warrants could add additional dilution if exercised.