Ocean Power Technologies Secures New Sales Agreement for Up to $40 Million

Ocean Power Technologies (OPTT) has signed a new sales agreement with Ladenburg Thalmann & Co. Inc. to offer and sell shares of its common stock, with a potential aggregate offering price of up to $40 million. This move follows the termination of a previous agreement with A.G.P/Alliance Global Partners, under which the company sold shares worth approximately $18 million. The new agreement allows for flexibility in selling shares and aims to support the company's capital raising needs.

Ocean Power Technologies (OPTT) has entered into a new sales agreement with Ladenburg Thalmann & Co. Inc. to offer and sell up to $40 million in shares of its common stock. This agreement replaces a previous arrangement with A.G.P./Alliance Global Partners, under which OPTT sold approximately $18 million worth of shares. The new agreement provides a flexible mechanism for OPTT to raise capital, with proceeds dependent on market conditions and the company's capital needs [1].

Under the terms of the agreement, Ladenburg Thalmann will act as the sales agent, executing sales consistent with OPTT's instructions and market conditions. The agent will receive a 3.00% commission on gross proceeds but is not obligated to buy shares as a principal. The shares will be issued under OPTT's effective Form S-3 shelf registration, with a prospectus supplement filed in connection with the program [1].

The termination of the prior ATM agreement with A.G.P./Alliance Global Partners did not result in any penalties. The new arrangement with Ladenburg Thalmann offers a mechanism for OPTT to raise capital opportunistically, although the actual proceeds will depend on market execution. For investors, this is a material financing tool that increases liquidity and optionality but can be dilutive if shares are sold extensively [1].

The new sales agreement permits at-the-market sales and negotiated transactions with the company's consent, executed per the company's instructions and applicable rules. Compensation is a fixed 3.00% of gross proceeds, with customary representations, indemnities, and expense reimbursements applying. The facility relies on the existing Form S-3 shelf for issuance. Replacing the prior AGP agreement (which resulted in ~$18M sold) with this new agent is a straightforward operational change. The impact is neutral-to-moderate: it is a meaningful financing capability but not an immediate credit or cash event until shares are sold [1].

References:
[1] https://www.stocktitan.net/sec-filings/OPTT/8-k-ocean-power-technologies-inc-reports-material-event-282a99f1d6bd.html