Business Context and Reporting Period
Company: Ocean Power Technologies, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: January 7, 2019
Event: Entry into a Material Definitive Agreement (Sales Agreement).
Key Financial Metrics
This filing does not report operational financial metrics such as revenue, profit, cash flow, margins, or debt levels. The filing focuses exclusively on a capital raising mechanism.
| Metric | Value |
|---|---|
| Maximum Aggregate Offering Price (Shelf) | $25,000,000 |
| Maximum Offering Price (Current Limitation) | $3,645,000 |
| Sales Agent Commission | 3.25% of gross proceeds |
Material Changes
On January 7, 2019, the Company entered into a Sales Agreement with A.G.P./Alliance Global Partners ("A.G.P.") to sell shares of its common stock via an "at-the-market" (ATM) offering. While the shelf registration allows for up to $25,000,000 in sales, the Company's current public float limits the immediate offering to $3,645,000. This represents a new liquidity facility for the Company to raise capital as needed.
Guidance, Outlook, and Risks
- Management Commentary: The Company is not obligated to sell any shares. Sales will depend on market conditions and the Company's capital raising needs.
- Methodology: Shares may be sold through the ATM Prospectus Supplement or other methods permitted by law with prior written consent.
- Costs: The Company will pay a 3.25% commission to A.G.P. and reimburse certain specified expenses.
- Termination: The offering terminates upon the termination of the Sales Agreement by either party.
Investor Verification Checklist
- Verify the Company's current public float to confirm the $3,645,000 sales cap remains accurate.
- Monitor future filings for actual share sales executed under this ATM agreement.
- Review the full text of the Sales Agreement (Exhibit 10.1) for specific price, time, or size limits the Company may impose.
- Check for any subsequent filings regarding the termination of the Sales Agreement.