Ocean Power Technologies Inc. (NASDAQ: OPTT) shares fell sharply on Friday after the company announced the pricing of its secondary offering. The company intends to price 2.4 million shares at $2.75 per share with an overallotment option for an additional 360,000. At this price. the entire offering is valued up to $7.59 million. The offering is expected to close on October 19.
The underwriters for the offering are Roth Capital Partners and Maxim Group.
Keep in mind that this company has a total market cap of roughly $8.7 million.
The company believes that it is the leader in ocean wave power. It is developing and seeking to commercialize its proprietary systems that generate electricity by harnessing the renewable energy of ocean waves. Its PowerBuoys use proprietary technologies that convert the mechanical energy created by the heaving motion of ocean waves into electricity. OPT currently has designed and continues to develop its PowerBuoy product line that is based on modular, ocean-going buoys.
The company intends to use the net proceeds from this offering for general corporate purposes, which may include additional development, testing and demonstrations of its PowerBuoy system with the goal of furthering and accelerating its commercialization efforts and expanding its sales and marketing functions.
Before Friday’s move, Ocean Power had outperformed the broad markets, with the stock up 35% year to date. Over the past 52 weeks, the stock was down 6%.
Shares of Ocean Power closed Friday down nearly 30% at $2.83, with a consensus analyst price target of $6.00 and a 52-week trading range of $0.95 to $15.65.