OPTT · Ocean Power Technologies, Inc.

On April 1, 2026, Ocean Power Technologies entered into a securities purchase agreement with institutional investors to issue $10 million in senior convertible notes, representing a material new financial obligation for the company. The notes carry a 4.5% annual interest rate, with a default rate of 13%, and mature 18 months after issuance at a 13% premium to face value, with quarterly cash amortization payments starting after the closing date. The notes are convertible to the company’s common stock at a fixed price of $0.40 per share, subject to customary adjustments for stock splits, dividends, and similar corporate events, with a 4.99% beneficial ownership cap to prevent note holders from exceeding that ownership threshold post-conversion. The transaction is executed under the company’s effective Form S-3 shelf registration statement (File No. 333-275843) declared effective in December 2023. The notes rank senior to the company’s existing unsecured debt, subject to limited exceptions, and include customary covenants restricting the company’s ability to incur additional debt, liens, make restricted payments, or alter its core business operations without noteholder consent.