Ocean Power Raising $4 Million in Best Efforts Public Offering

Ocean Power Technologies Inc., which manufactures buoys that generate electricity, is raising about $4 million from a best efforts public offering, and plans to use the proceeds for general corporate purposes.

Ocean Power priced 595,000 units at $6.75 each, the Pennington, New Jersey-based company said in a statement Friday. Each unit consists of one share of its common stock and 0.3 of a warrant to purchase one share of common stock, at an exercise price of $9.36 a share. The warrants will be exercisable for five years, starting on the issuance date.

Ocean Power fell 6.6 percent to $8.74 at 10:14 a.m. in New York after earlier dropping as much as 20 percent. Shares tripled this month after the company deployed its first power-generating buoy designed for commercial use, off the coast of New Jersey.

Roth Capital Partners LLC is sole placement agent. The offering is expected to close July 27.

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