Ocean Power Technologies, Inc. (NASDAQ:OPTT) Files An 8-K Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing
Item 3.01

As previously disclosed on a Current Report on Form 8-K filed on August 13, 2018 with the U.S. Securities and Exchange Commission (the “SEC”), on August 9, 2018, Ocean Power Technologies, Inc. (the “Company”) received a written notice (the “Initial Notice”) from the Listing Qualifications department of The Nasdaq Stock Market (“Nasdaq”) indicating that the Company was not in compliance with the $1.00 Minimum Bid Price requirement set forth in Nasdaq Listing Rule 5550(a)(2) for continued listing on The Nasdaq Capital Market. Consistent with Nasdaq rules, the Company was provided a grace period of 180 days, through February 5, 2019, to regain compliance with the Minimum Bid Price Rule. On February 11, 2019, the Company received another written notice from the Listing Qualifications department of Nasdaq (the “Second Notice”) notifying the Company that it had not regained compliance with the Minimum Bid Price and that the Company’s stockholders’ equity as reported in the Company’s Quarterly Report on Form 10-Q for the second quarter of Fiscal Year 2019 ended October 31, 2018 did not qualify the Company for an additional 180 calendar day extension period for compliance. Accordingly, unless the Company requested an appeal of this determination the Company’s securities would have been subject to suspension and commencement of delisting procedures on February 21, 2019. On February 19, 2019 the Company appealed the Second Notice to a Nasdaq Hearings Panel (the “Panel”), to the procedures set forth in the Nasdaq Listing Rule 5800 Series with the delisting procedures stayed by Nasdaq that same day pending a final written decision by the the Panel. Subsequently, on March 14, 2019, Nasdaq notified the Company that its stockholders’ equity as reported in the Company’s Quarterly Report on Form 10-Q for the third quarter of Fiscal Year 2019 ended January 31, 2019 was below the minimum $2.5 million standard for continued listing of The Nasdaq Capital Market (the “Stockholders’ Equity Rule”) and that this additional deficiency would serve as a separate basis for delisting, pending the hearing discussed below.

The hearing took place on March 28, 2019, during which the Company presented its plan of compliance with regard to both deficiencies and requested that the Panel acknowledge the Company’s subsequent compliance with the Minimum Bid Price Rule and grant the Company a conditional listing through April 30, 2019 to cure the Stockholders’ Equity Rule. On April 4, 2019, the Company received a written notice from the Panel that the Minimum Bid Price deficiency had been cured and that an extension through April 30, 2019 had been granted to demonstrate compliance with the Stockholders’ Equity Rule subject to, on or prior to such date, (i) completing a compliance plan as described within the Panel’s decision letter, (ii) issuing public disclosure that it has over $2.5 million in stockholders’ equity, and (iii) demonstrating to the satisfaction of the Panel that it can maintain compliance over the coming year.

About Ocean Power Technologies, Inc. (NASDAQ:OPTT)

Ocean Power Technologies, Inc. is developing and seeking to commercialize its systems that generate electricity by connecting the renewable energy of ocean waves. The Company’s PowerBuoy systems use technologies that convert the mechanical energy created by the rising and falling of ocean waves into electricity. The Company focuses on developing its PowerBuoy product line, which is based on modular, ocean-going buoys. Its autonomous PowerBuoy generates power for use in remote locations, independent of an existing power grid. The Company focuses on developing and commercializing its PowerBuoy products and services for use in autonomous power applications. The Company markets its PowerBuoys in the United States and internationally. The autonomous PowerBuoy integrates a power take-off (PTO) and onboard system for energy storage and management. Its PowerBuoy product is the PB3. PB3 can act as an uninterruptable power supply (UPS), which recharges itself by harvesting energy from the waves.