By early afternoon, shares had plunged 8.9% to $3.69, lower than Tuesday's high of $4.07. Trading volume of 1.4 million shares was nearly equal to its three-month daily average of 1.9 million.
On Tuesday, the alternative energy stock gained nearly 9% on the announcement it had received A$5 million in initial grant funding from the Australian Renewable Energy Agency. The funding is for Ocean Power's 88%-owned subsidiary Victorian Wave Partners and will be used to fund the construction of its planned wave-power station off the coast of Australia.
Separately, Pennington, N.J.-based Ocean power said U.S. Energy Department had terminated an agreement to deploy a PowerBuoy off the coast of Reedsport, Oregon.
In an SEC filing, the company explained, "The Reedsport project encountered a considerable increase in costs related to the project. The company was unable to obtain the required financing directly related to the completion of the project. In light of the determination to terminate by mutual agreement, the Company and the DOE are discussing the steps necessary to close out the project. The Company does not expect the termination of the contract to have a material impact on its reported financial position."
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