Ocean Power Technologies Inc. (NYSE American: OPTT) entered into securities purchase agreements with institutional investors for a registered direct offering of 25 million shares of common stock and accompanying warrants, the company announced.

The offering is priced at $0.40 per share and warrant combination. The common warrants will become exercisable six months after issuance at an exercise price of $0.40 per share and will expire six years from the initial exercise date.

The company expects to receive gross proceeds of approximately $10 million before deducting placement agent fees and other offering expenses. Ocean Power Technologies plans to use the net proceeds for working capital and general corporate purposes.

Ladenburg Thalmann & Co. Inc. is serving as the exclusive placement agent for the offering. The transaction is expected to close on or about June 8, 2026, subject to customary closing conditions.

The securities are being offered under a shelf registration statement on Form S-3 that was declared effective by the Securities and Exchange Commission on December 12, 2023.