Ocean Power Technologies, Inc. (NASDAQ:OPTT) Files An 8-K Other Events
Item 8.01 Other Events.
Paycheck Protection Program Loan
On May 1, 2020, Ocean Power Technologies, Inc. (the “Company”) was informed that it would receive approximately $890,000 in support from the U.S. federal government under the Paycheck Protection Program (the “PPP Loan”) established as part of the Coronavirus Aid, Relief and Economic Security Act, or the CARES Act through the Small Business Association. The PPP Loan will be unsecured and evidenced by a note in favor of Santander Bank, N.A. (“Santander”) as the lender (the “Note”), and governed by a Loan Agreement with Santander (the “Loan Agreement”). The Company will update its disclosure respecting the loan once documentation is finalized.
EGP Agreement
The Company and Enel Green Power S.p.A. (“EGP”), part of the Enel Group, a multinational energy company and global integrated electricity and gas operator, have mutually agreed under the contracts between the Company and subsidiaries of EGP dated September 19, 2019 (together, the “EGP Agreements”), to extend the required deployment date under the EGP Agreements for the PB3 PowerBuoy® to September 1, 2020, and to extend the date upon which liquidated damages would begin to accrue for a failure to deploy by such date to September 30, 2020. A description of the EGP Agreements is included in the Company’s Current Report on Form 8-K filed on September 23, 2019.
The extensions were agreed to in connection with the declaration of a force majeure event effective May 2, 2020 by the Company under the EGP Agreements. As a result of the global pandemic caused by COVID-19, and the associated travel advisories put in place by the U.S. government, as well as the related restrictions imposed by the Chilean government, employees of the Company are unable to travel to Chile to perform final testing and assembly of the PB3 PowerBuoy® prior to its deployment under the EGP Agreements. If the force majeure event continues for more than 180 days, either party may terminate the contracts.
Copies of the EGP Agreements are incorporated by reference into this Current Report on Form 8-K as Exhibits 10.1 and 10.2.
Item 9.01 Financial Statements and Exhibits.
* Portions of this exhibit have been redacted in accordance with Item 601(b)(10) of Regulation S-K.
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.
