Dallas, Texas 04/08/2014 (FINANCIALSTRENDS) – Ocean Power Technologies Inc (NASDAQ:OPTT) is one of those new age energy producers which has always used unique technology to capture oceanic power. The Pennington-based energy producer has been successful in harnessing the mechanical energy of the ocean – caused by the rise and fall of waves- into electricity for commercial conversion.
It has been successful in offering two models – called as PowerBuoy systems for utility and the other is the Autonomous Powerbuoy system to produce power for power grids which are located at remote geographies, where electricity supply is limited.
Ocean Power Technologies Inc(NASDAQ:OPTT) has since announced that it will offer a public offering. Preliminary details of the offer indicate- $3.10 shares at 3.8 million shares. The offer includes a 30-day option grant for underwriters, who will now acquire – 570,000 shares to complete any overallotments
However post the announcement, the company has actually been witness to a fall.
Ocean Power Technologies Inc(NASDAQ:OPTT) has indicated that the net proceeds for the company are at $10.8million and it will use the funds raised by this financial instrument to address requirements such as – capital expenditures, working capital as well as general corporate purposes. It will also use the funds to bring in testing, development as well offering demonstrations of the system thus far.
Ocean Power Technologies Inc(NASDAQ:OPTT) will close this offer on April 9, but this will be governed by standard closing conditions. The wave-energy optimizer has appointed Roth Capital Partners as the sole manager.
Analysts recommend Sell
Ocean Power Technologies Inc(NASDAQ:OPTT) continued bull-run and the timing of its public offer, has led to analysts recommending a sell of this stock. The major weakness in terms of investment requirements is the poor equity returns. While it does hold other strengths, the overall weakness outweighs and the stock is recommended for sale.