NEW YORK (TheStreet) -- Shares of Ocean Power Technologies (OPTT) were sinking 25.62% to $2.99 on heavy trading volume late Friday morning after the company said it would sell 2.4 million shares of common stock for $2.75 per share in a public offering.
The renewable ocean wave energy company has given underwriters the option to buy up to 360,000 additional shares. Roth Capital and Maxim will be the joint book-runners for the offer.
Ocean Power plans to use its proceeds from the sale for general corporate purposes like developing, testing and demonstrating its products.
The offer is scheduled to close on or near October 19.
More than 4.67 million shares of the Pennington, NJ-based company have traded so far today vs. the 30-day average volume of about 549,000 shares.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "sell" with a ratings score of D-.
Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity.
You can view the full analysis from the report here: OPTT