NEW YORK (TheStreet) -- Ocean Power Technologies (OPTT) stock is spiking by 257.53% to $5.22 on heavy trading volume early Wednesday afternoon, after the company entered into a PB3 PowerBuoy lease agreement with Mitsui Engineering and Shipbuilding (MIESF).
The deal is valued at $975,000, according to a statement. It is the New Jersey company's first commercial agreement with Tokyo-based Mitsui, which helped develop the PowerBuoy.
Under the terms of the agreement, Ocean Power Technologies will provide engineering support, deployment planning and logistics and ocean performance data collection and analysis. The two companies will jointly develop and test a control algorithm to assess ocean wave energy capture and electric power generation for potential customers in and around Japan.
The PowerBuoy systems generate electricity by harnessing the renewable energy of ocean waves.
"We believe that the deployment under this agreement could provide access to a potentially huge market in Japan and the surrounding areas, and we're looking forward to potentially leveraging these events with other interested parties," CEO George Kirby said in a statement.
About 10.44 million shares of Ocean Power Technologies have been traded so far today, well above the company's average trading volume of roughly 12,739 shares per day.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D-.
Ocean Power Technologies's weaknesses include its disappointing return on equity and generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: OPTT