Ocean Power Technologies Inc (NASDAQ:OPTT) shares plunged on Friday after pricing a $6.6 million public offering of 2.4 million common shares at $2.75 per share. The public offering price was at 31.6% discount compared to Thursday’s closing price.

The company had reported earlier last week its plans for a 2.5 million share offering, with proceeds to be used for additional development, demonstrations and testing of its PowerBuoy system. It had an objective of expanding its commercialization, sales and marketing measures in coming period.

The buzz

Earlier in this month, Ocean Power reported the successful closure of the pre-requisite stage gate assessment with Mitsui Engineering and Shipbuilding. This review enables company to move forward with the PB3 delivery to Japan. The company also reported its operational performance authorization for 2 PB3 PowerBuoys® presently positioned off the New Jersey coast. It was successful in accomplishing a considerable breakthrough in the power take-off enhanced life testing of more than 48 million cumulative strokes.

The management speaks

George H. Kirby, the CEO and President of Ocean Power, said that they are thrilled to report the successful closure of the pre-requisite stage gate assessment with MES. This major accomplishment sets the stage for company to ship its commercial PB3 PowerBuoy in Japan market and begin the MES lease. Moreover, they are delighted to announce the successful ocean approval of both PowerBuoys as a notable accomplishment in their commercialization strategy.

Closure of this critical measure permits Ocean Power to advance its commercialization initiatives to future phases. It will also help to address applications in firm’s target markets including gas and oil, ocean observing, communications and security and defense.

Dr. Mike M. Mekhiche, Executive VP of Engineering and Operations, said that the ocean test of first commercial PB3 was done in July. It is planned for shipment in FY2017 for a 6-month deployment off in Japan. Since July 2016, this PB3 PowerBuoy has produced electric power of more than 600 kWh. Also, it has attained a single day generation of 28 kWh in its 76-day deployment period, indicating an equivalent hourly average of more than 1.1 kW in that day.