The Ocean Power Technologies Inc (NASDAQ:OPTT) stock floundered Monday, struck by the wave of 2.875 million new shares being offered by the company under an S-1 registration with the SEC.
The stock closed at $5.46, after 509K shares changed hands.
Ocean Power is a leader in ocean wave energy conversion. Its proprietary PowerBuoy® technology is based on a scalable and modular design for cost-effective and environmentally sound ocean wave based power generation and management.
Ocean Power Technologies Inc (NASDAQ:OPTT) crushed again by dilution
Investors will recall the July histrionics in Ocean Power.
The stock surged 76% on July 20 to $13.92 after the company declared earnings for the 2016 fiscal year, reporting revenue of $700,000 and a net loss of $13.1 million, as compared with fiscal 2015 revenue of $4.1 million and a net loss of $13.2 million.
However, shareholders did not rejoice for long.
The company lost no time in announcing an offering of its common stock and warrants to purchase common stock in a best efforts public offering.
The offer was for 595,000 units, at a price of $6.75 per Unit, each of which consisted of one share of its common stock and 0.3 of a warrant to purchase one share of its common stock at an exercise price of $9.36 per share.
Shares have trended downwards ever since, despite the flow of period, encouraging news. These included a contract with the U.S. Department of Defense Office of Naval Research, and more recently, the successful completion of the pre-requisite stage gate review with Mitsui Engineering and Shipbuilding, which allows Ocean Power to proceed with the shipment of the first PB3 Powerbuoy to Japan.
From a July high of $15.65, shares have fallen 65% to $5.46 yesterday.
Ocean Power Technologies Inc (NASDAQ:OPTT) use of funds
Ocean Power may use the proceeds from the current issue to fund 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, apart from general corporate purposes.