OPTT Secures $373,750 in Financing via a Convertible Promissory Note

Ocean Power Technologies, Inc. entered into a Securities Purchase Agreement with Vanquish Funding Group Inc. for a financing arrangement. The company issued a 12% promissory note to raise capital for general working capital purposes, with the potential for additional financing tranches over the next twelve months.

Key Details

• Financing: The company issued a promissory note with a principal amount of $373,750 for a purchase price of $325,000, which includes an original issue discount of $48,750.
• Terms: The note matures on October 30, 2027. The agreement includes the potential for up to $2,875,000 in additional financing over the next year, subject to further agreement.
• Conversion Rights: The note is convertible into common stock at the holder's option only upon an Event of Default. The conversion price is set at a 25% discount to the lowest trading price during the ten trading days preceding the conversion date.