Ocean Power Technologies enters into common stock purchase agreement

Ocean Power Technologies, Inc. has announced that it has executed a Common Stock Purchase Agreement with Aspire Capital Fund, LLC to sell up to US$10 Million in common stock to Aspire Capital over a term of 30 months, commencing after a registration statement related to the transaction has been filed and declared effective by the U.S. Securities and Exchange Commission. Proceeds will be used by Ocean Power for general corporate purposes, including working capital.

Key terms under the Purchase Agreement include: 

• Ocean Power will control the timing and amount of any sales to Aspire Capital based on market price at the time of each sale;
• Aspire Capital has no right to require any sales by Ocean Power but is obligated to make purchases when the Company desires to sell shares of its common stock to Aspire Capital, in accordance with the terms of the Purchase Agreement;
• Ocean Power also has the right to sell shares to Aspire Capital at up to 30% to the trading volume of the shares for the next business day at a volume weighted average price ("VWAP") at the lesser of the closing sale price or 97% of the next day's VWAP.
• Aspire Capital has agreed that neither it nor any of its agents, representatives and affiliates shall engage in any direct or indirect short-selling or hedging of the Company's common stock during any time prior to the termination of the Purchase Agreement;
• There are no limitations on the use of proceeds, financial covenants or restrictions on future financings and there are no rights of first refusal, participation rights, penalties or liquidated damages in the Purchase Agreement; and
• The Purchase Agreement may be terminated by Ocean Power at any time, at its discretion, without any additional cost or penalty.