Ocean Power Technologies (NYSE: OPTT) amended and restated its Section 382 Tax Benefits Preservation Plan on June 29, 2026, extending the plan's expiration from June 29, 2026 to June 29, 2029, according to a company statement.

The board of directors unanimously approved the amended plan, which is designed to protect the company's net operating losses and other tax attributes from being limited under Section 382 of the Internal Revenue Code. Under that provision, an "ownership change" — defined as certain stockholders increasing their ownership by more than 50 percentage points over a rolling three-year period — could substantially restrict the company's ability to use those tax benefits against future taxable income.

The amended plan deters any person or group from acquiring 4.99% or more of the company's outstanding common stock without board approval. If a person crosses that threshold without approval, existing rights holders could purchase shares at a significant discount, diluting the acquiring party's stake.

The purchase price per unit of Series A Participating Preferred Stock under the amended plan has been adjusted to $2.25, down from $4.00 per unit under the original plan adopted in June 2023. Each unit would carry approximately the same dividend, voting, and liquidation rights as one share of common stock.

The plan also allows the board to grant exemptions on a case-by-case basis. Rights under the plan are not currently exercisable and trade automatically with shares of common stock until a triggering event occurs. The plan may expire earlier than 2029 if the rights are redeemed or exchanged, or if the board determines the plan is no longer necessary to preserve the company's tax benefits.