American wave energy company Ocean Power Technologies (OPT) has entered into $10 million common stock purchase agreement with institutional investor Aspire Capital Fund.
According to the agreement, OPT will sell its common stock to Aspire Capital over a term of 30 months, starting after a registration statement related to the transaction has been filed and declared effective by the US Securities and Exchange Commission.
Proceeds will be used by OPT for general corporate purposes, including working capital, the company said.
George Kirby, President and Chief Executive Officer of OPT, said: “We are excited about this partnership with Aspire Capital and the opportunity of potential future access to capital at attractive terms.
“It provides the company greater flexibility and access to additional funding allowing the company to strengthen its financial position as it is gaining critical momentum in its commercialization programs, including the continued marketing and sale of our PB3 PowerBuoy to our targeted markets.”
Aspire Capital invests in a wide range of companies and industries emphasizing life sciences, energy and technology.
OPT’s proprietary PowerBuoy technology is based on a modular and scalable design. It has undergone and continues to undergo periodic full-scale ocean performance validation. The PowerBuoy harnesses the power of the waves and can be used for offshore applications.