Ocean Power Technologies (OPT) has executed a new common stock purchase agreement with Aspire Capital Fund.
The new deal will sea OPT sell up to $12.5 million in common stock to Aspire Capital over a term of 30 months.
This follows a $10-million purchase agreement from October last year.
OPT also inked a similar deal with Aspire Capital in August 2018.
Proceeds will be used by OPT to build additional PowerBuoys as needed to meet potential market demand
In addition, OPT will use the funds to further advance the development of new products and solutions, and for other general corporate purposes.
George H. Kirby, president and chief executive officer of Ocean Power Technologies, said:
“We are excited to renew our relationship with Aspire Capital and the flexibility to potentially access capital on a cost-effective basis.
“By focusing on lowering costs to obtain working capital, we believe this agreement allows the company to receive a higher value return for funding to meet our projected sales growth and our continued innovations in providing ocean power.”
OPT recorded around 13 per cent increase in net loss for the Q1 FY21 versus the same period last year.
The Q1 of FY21 net loss was $3.4 million, against $3 million in the prior-year comparable period.
According to OPT, the loss was specifically attributable to product development and administrative costs.
The Us-based company generated revenue of $169,000 for Q1 of fiscal 2021.
The result is slightly down form $202,000 in the first quarter of fiscal year 2020.
Specifically, OPT revenue for the three months ended July 31, 2020, came from the Enel Green Power project.