Ocean Power Technologies (OPTT) has entered into agreements to exchange its existing Series C-1 Convertible Notes for new Series D Convertible Notes and to amend certain outstanding common warrants. The key feature of these agreements is a significant reduction of the conversion and exercise prices from $12.00 down to $2.45.
Key Details
- Note Exchange: The company exchanged its Series C-1 Convertible Notes (issued April 1, 2026) for new Series D Convertible Notes. The conversion price was reduced from $12.00 to $2.45 per share.
- Warrant Amendment: The exercise price of common warrants issued on June 8, 2026, was also adjusted downward from $12.00 to $2.45 per share.
- New Note Terms: The Series D Notes bear a 4.5% interest rate (13% upon default), mature in 18 months, and include an alternative conversion price equal to 93% of the lowest VWAP during the seven trading days prior to conversion. Amortization payments on the new notes will begin on January 1, 2027.