Ocean Power Technologies, Inc. Announces 1-For-10 Reverse Stock Split
October 28 2015 - 7:30AM
Ocean Power Technologies, Inc. (Nasdaq:OPTT)
("OPT" or "the Company") today announced that it will effect a
reverse stock split at a ratio of one share of newly issued common
stock for each 10 shares of issued and outstanding common stock.
OPT anticipates that the reverse stock split will be effective at
5:00 p.m. Eastern Standard Time on October 28, 2015, and that the
common stock will commence trading on a split-adjusted basis as of
the opening of trading on October 29, 2015.
At the Company's annual meeting of stockholders held on October
22, 2015, OPT's stockholders approved a proposal to file an
amendment to the Company's Certificate of Incorporation to effect a
reverse split of the Company's common stock, $0.001 par value per
share, at ratios ranging from one-for-five to one-for-12, with the
Company's Board of Directors authorized to determine the specific
ratio (within the approved range) and the timing of the
effectiveness of the reverse stock split, at the discretion of the
Company's Board of Directors.
The Board of Directors approved the one-for-10 ratio for the
reverse stock split, with an effective date and time at 5:00 p.m.
Eastern Standard Time on October 28, 2015, and trading on a
split-adjusted basis as of the opening of trading on October 29,
2015. The purpose of the reverse split is to raise the per share
trading price of OPT's common stock to regain compliance with the
$1.00 per share minimum bid price requirement for continued listing
on The Nasdaq Capital Market. However, there can be no assurance
this desired effect will occur or be maintained.
The common stock will trade under a new CUSIP number, 674870407,
effective October 29, 2015.
Upon the effectiveness of the reverse stock split, each 10
shares of the Company's issued and outstanding common stock will be
automatically combined and converted into one newly issued and
outstanding share of common stock. The reverse stock split will
affect all issued and outstanding shares of the Company's common
stock, as well as common stock underlying stock options, stock
appreciation rights and restricted stock units, outstanding
immediately prior to the effectiveness of the reverse stock split.
Proportional adjustments also will be made to the shares of common
stock issuable under the Company's stock incentive plans. The
reverse stock split will reduce the number of shares of the
Company's common stock currently outstanding from approximately 18
million to approximately 1.8 million. The reverse stock split will
not affect any stockholder's ownership percentage of common stock
and will not change the par value per share of the common stock. In
addition, the number of authorized shares of the Company's common
stock will be decreased from 105 million to 50 million.
No fractional shares will be issued in connection with the
reverse split. Stockholders who would otherwise hold a fractional
share of the Company's common stock will receive a cash payment in
lieu of such fractional share based on the average closing price of
the common stock on the Nasdaq Capital Market for the five trading
days prior to the effective date of the reverse stock split.
OPT has selected ComputerShare, Inc., the Company's transfer
agent, as the exchange agent for the reverse stock split.
Stockholders with shares held in book-entry form or through a bank,
broker or other nominee are not required to take any action and
will see the impact of the reverse stock split reflected in their
accounts following the effective date. Beneficial holders may
contact their bank, broker or nominee for more information.
Stockholders with shares held in certificate form may exchange
their stock certificates for book-entry shares representing the
shares of common stock resulting from the reverse stock split.
Shortly after the effective date, such stockholders will receive a
Letter of Transmittal and instructions for exchanging their
certificates from the Company's exchange agent, Computershare,
Inc.
At the Company's Annual Meeting of Stockholders, the
stockholders also approved the election of five directors to the
Board of Directors, ratified the selection of KPMG, LLP as the
Company's auditors for fiscal 2016, approved the advisory
resolution on executive officer compensation, and approved the
Company's 2015 Omnibus Incentive Plan.
About Ocean Power Technologies
Headquartered in Pennington, New Jersey, Ocean Power
Technologies, Inc. (Nasdaq:OPTT) is a pioneer in renewable
wave-energy technology that converts ocean wave energy into
electricity. OPT's proprietary PowerBuoy® technology is based on a
modular design and has undergone periodic ocean testing since 1997.
OPT specializes in cost-effective and environmentally sound ocean
wave based power generation and management technology.
Forward-Looking Statements
This release may contain "forward-looking statements" that are
within the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are
identified by certain words or phrases such as "may", "will",
"aim", "will likely result", "believe", "expect", "will continue",
"anticipate", "estimate", "intend", "plan", "contemplate", "seek
to", "future", "objective", "goal", "project", "should", "will
pursue" and similar expressions or variations of such expressions.
These forward-looking statements reflect the Company's current
expectations about its future plans and performance. These
forward-looking statements rely on a number of assumptions and
estimates which could be inaccurate and which are subject to risks
and uncertainties. Actual results could vary materially from those
anticipated or expressed in any forward-looking statement made by
the Company. Please refer to the Company's most recent Forms 10-Q
and 10-K and subsequent filings with the SEC for a further
discussion of these risks and uncertainties. The Company disclaims
any obligation or intent to update the forward-looking statements
in order to reflect events or circumstances after the date of this
release.
CONTACT: Company Contact:
Mark A. Featherstone
Chief Financial Officer
Phone: (609) 730-0400
Investor Contact:
Shawn Severson
The Blueshirt Group
Phone: (415) 489-2198
Ocean Power Technologies (NASDAQ:OPTT)
Historical Stock Chart
From Mar 2024 to Apr 2024
Ocean Power Technologies (NASDAQ:OPTT)
Historical Stock Chart
From Apr 2023 to Apr 2024