After the bell, shares slipped 5.3% to $3.60.
The Pennington, N.J.-based business did not disclose the size or terms of the offering, nor when it expected it to be completed.
"The company intends to use the net proceeds of any sale of securities under this prospectus supplement for any combination of working capital, capital expenditures, and general business purposes, including additional development, testing and demonstrations of its PowerBuoy systems," Ocean Power said in a statement.
The company also said it might use proceeds to fund short-term investments in complementary businesses, products and technologies, though it currently has no agreements or commitments other than those publicly disclosed.
Roth Capital Partners is acting as the sole manager for the offering.
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TheStreet Ratings team rates OCEAN POWER TECHNOLOGIES INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate OCEAN POWER TECHNOLOGIES INC (OPTT) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity."