Paragon urges Ocean Power shareholders to disregard Stratmann’s statements

Paragon Technologies, owning approximately 4.8% of the outstanding shares of Ocean Power Technologies, said it “calls on CEO Phillip Stratmann to immediately substantiate his misleading statements about OPT’s future made in the Company’s January 17, 2024 press release.” The company said, “Mr. Stratmann now claims, “OPT expects that recent meaningful contract wins…. will enable (OPT) to reach profitability during calendar year 2025 using current capital resources.” Yet the supporting slide presentation states that OPT expects to be “EBITDA breakeven, excluding extraordinary expenses, in calendar 2025. Mr. Stratmann, is it profitability or EBITDA breakeven in 2025? These are not equivalent terms. Or is that your way of covering yourself given the increasing financial disaster you have created as CEO? Mr. Stratmann, how will OPT finance itself in 2025? With less than $19 million in cash, and quarterly expenses of $6 to $8 million, OPTT will likely have NO capital resources by the end of 2024. Mr. Stratmann has failed to announce any numerical transparency cost reductions and as we have stated previously, a modest decline in expenses from current levels will likely not be enough to generate any profitability. As shareholders, we call on Stratmann to explain and demonstrate to shareholders precisely how OPT will indeed reach profitability in 2025 with the current capital resources. Stratmann has yet to announce a numerical and quantifiable cost cutting strategy or provide any projections reflecting how the company plans to achieve what the company is now claiming…We believe OPT’s Board has continued to take measures and make statements that are self-serving and highly misleading to shareholders. The results speak for themselves. Paragon asks shareholders to think carefully about whether OPT’s CEO and Board can be trusted with the future of the Company if they continue to make critical statements about OPT’s future without ever providing numerical substantiation of any of their claims. OPT is in dire need of change. Please only vote on the BLUE proxy card so we can begin the work and effort that this Board appears incapable of doing.”