Ocean Power Technologies

Kurta Law is investigating broker recommendations of Ocean Power Technologies (NASDAQ: OPTT). These were high-risk investments and may have been unsuitable for many investors. The prospectus for this offering clearly states, “Investing in our common stock involves substantial risk.” The prospectus is the document companies file with the Securities and Exchange Commission (SEC) when registering their offering. Investors who specified they wanted low-risk or moderate-risk investments should not have these shares in their portfolios. Unsuitable investments violate Regulation Best Interest, which requires brokers to consider their clients’ risk tolerance before making recommendations.  

If you believe you suffered investment losses due to broker misconduct or fraud, contact the investment loss attorneys at Kurta Law today. Call (877) 600-0998 or email info@kurtalawfirm.com.  

About Ocean Power Technologies  

According to the prospectus, Ocean Power Technologies specializes in “ocean wave power conversion technology.” The company stated its aim to commercialize the PB3 PowerBuoy which “generates electricity by harnessing the renewable energy of ocean waves.”  

The Offering 

The prospectus dated April 26, 2017, announced that Ocean Power Technologies was offering 5,385,000 shares of common stock for $1.30 per share. As of April 12, 2024, Ocean Power Technologies is trading for $0.24 per share. 

Risks Associated with Ocean Power Technologies Investments  

The following risks appear in the prospectus. These are just some of the risks that Kurta Law has chosen to highlight – see the prospectus for the complete list.  

Future Stock Offerings May Depress the Stock Price 

Ocean Power Technologies may issue more shares of common stock in order to raise funds. These offerings may depress stock prices.  

Scaled Disclosure Requirements  

The prospectus states, “As a smaller company, we are subject to scaled disclosure requirements that may make it more challenging for investors to analyze our results of operations and financial prospects.” Less publicly available information generally equals more risk for investors.  

Possible Volatility  

The prospectus discloses that “Historically, the market price of our common stock has fluctuated significantly and we expect that this will continue.”  

Ocean Power Technologies lists the following factors that may influence stock price:  

• The success of competitive technologies 
• Regulatory developments in the U.S. and in foreign markets 
• Developments or disputes concerning patents or other proprietary rights  
• Recruitment or departure of key personnel  
• Market conditions in renewable energy industries  
• The failure of securities analysts to cover Ocean Power Technologies common stock or changes in financial estimates by analysts.  

Aegis Capital Corp. Underwriting    

Investors should know that Aegis Capital Corp. served as the underwriter for this offering. Underwriters take on risk in exchange for a fee, which could motivate certain investment banks to underwrite investments that pose too much risk for the average retail investor. Additionally, brokers may have conflicts of interest when they recommend shares that are underwritten by an affiliate of their brokerage firm.  

Kurta Law Can Help  

Contact Kurta Law today for a free case evaluation – keep in mind that you have a limited time to file a claim. Our attorneys do not collect a fee unless we win your case. If you have any questions, call (877) 600-0098 or email info@kurtalawfirm.com.