By market open, shares had taken off 17.4% to $3.14.
The wave-energy specialist said it would offer 3.8 million shares at $3.10 a share. Underwriters have also been granted a 30-day option to acquire up to an additional 570,000 shares to cover overallotments.
Pennington, N.J.-based Ocean Power expects to receive net proceeds of $10.8 million, which it says it may use for working capital, capital expenditures and general corporate purposes. The proceeds may also be used in the development, testing and demonstrations of its PowerBuoy systems.
The offering is expected to close on April 9, subject to customary closing conditions.
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."