Ocean Power Technologies, Inc. · AMEX:OPTT
Ocean Power Technologies — Proxy Contest (January 2024)
24 slides from Ocean Power Technologies's proxy contest presentation, Jan 16, 2024
Slide 1: A Call To Action to Rescue Shareholders
Ocean Power Technologies, Inc. 1 A Call To Action to Rescue Shareholders A board Ocean Power Technologies Sinking Ship
Slide 2: Important Information and Participants in the Solicitation
Ocean Power Technologies, Inc. Important Information and Participants in the Solicitation Paragon has filed a definitive proxy statement and associated Blue universal proxy card with the Securities and Exchange Commission (“SEC”) to be used to solicit votes for the election of its slate of four high
Slide 3: Contents
Ocean Power Technologies, Inc. • OPT – An Epic Business Failure Since Day One • Who We Are • Stockholder Voting Instructions • Background • Why Change is Urgently Needed at the Board Level • Paragon’s Plan • Paragon’s Nominees • Conclusion 3 Contents
Slide 4: Who we are
Ocean Power Technologies, Inc. Who we are 4 Paragon has a distinguished track record of delivering sustainable, significant shareholder value while remaining 100% aligned with ALL shareholders. We will do the same at OPT. • Paragon Technologies is a diversified holding company with business activiti
Slide 5: Vote for Change at Ocean Power Technologies, Inc.
Ocean Power Technologies, Inc. VOTE FOR CHANGE AT OCEAN POWER TECHNOLOGIES, INC. 5 Your vote is important, no matter how many shares of OPTT Stock you own. Paragon urges you to vote only on its “Blue Proxy Card” and disregard ALL White Proxy Car ds you receive from OPT. Vote “FOR” Paragon’s Highly Q
Slide 6: Vote for Change at Ocean Power Technologies, Inc.
Ocean Power Technologies, Inc. VOTE FOR CHANGE AT OCEAN POWER TECHNOLOGIES, INC. 6 Stockholders are permitted to vote for any combination (up to but no greater than six total director nominees) on Paragon’s BLUE universal proxy card. Paragon recommends a v ote “ FOR ” the election of Paragon’s four
Slide 7: Background
Ocean Power Technologies, Inc. Background 7 • Paragon Technologies, the largest shareholder of Ocean Power Technologies (OPT), owning approximately 4. 8 % of the outstanding shares of the Company. • Early in 2023 Paragon expressed serious concerns about OPT’s alarming financial and share price under
Slide 8: OPTT's Abysmal Stock Price Performance – Huge Losses for ALL shareholders
Ocean Power Technologies, Inc. OPTT’s Abysmal Stock Price Performance – Huge Losses for ALL shareholders • 99.99% decline since trading began • 99.95% decline since current Chairman Cryan joined the board • 86.9% decline since current CEO Stratmann joined the board • Over this time the Russell 3000
Slide 9: OPTT's Abysmal Stock Price Performance – a lesson in failure!
Ocean Power Technologies, Inc. OPTT’s Abysmal Stock Price Performance – a lesson in failure! Since OPTT began trading, OPTT has plummeted by 99.99% from $2,900 to just 32 cents per share! During this period, the Russell 3000 index is up 265% from $740 to $2,700. • OPTT has continued to trade at a di
Slide 10: Dreadful Performance
Ocean Power Technologies, Inc. Why Change is Urgently Needed - Dreadful Performance 10 OPT’s dismal track record speaks for itself. • OPT’s stock price has declined from a split adjusted $4,000 per share in 2007 and $586 per share - since chairman Terence J. Cryan joined the board in 2012 – to just
Slide 11: Management Has Consistently Destroyed Shareholder Value
Ocean Power Technologies, Inc. Why Change is Urgently Needed - Management Has Consistently Destroyed Shareholder Value • In the span of the last six years, OPTT has lost more than 10 times the amount of revenue it has generated. • Over the past three years, OPTT has lost over $60 million • On the mo
Slide 12: While the Board and NEO's Reward Themselves
Ocean Power Technologies, Inc. Why Change is Urgently Needed - While the Board and NEO’s Reward Themselves • OPTT has been consistently paying a handful of directors and named executive officers more than the company has been generating in revenues! 12 Fiscal Year 2018 2019 2020 2021 2022 2023 Aggre
Slide 13: Stop the Value Transfer from Shareholders to Insiders
Ocean Power Technologies, Inc. Why Change is Urgently Needed - Stop the Value Transfer from Shareholders to Insiders 13 Insiders get more... ... while Shareholders Receive Less During the past three years • CEO Stratmann awarded hundreds of thousands in cash and stock bonuses annually while OPT repo
Slide 14: Stop the Value Transfer from Shareholders to Insiders
Ocean Power Technologies, Inc. Why Change is Urgently Needed - Stop the Value Transfer from Shareholders to Insiders CEO and board takes outrageous compensation as losses mount • In the face of non - ending losses and systemic equity dilution, the board rewarded itself by increasing its compensation
Slide 15: Governance Failures
Ocean Power Technologies, Inc. Why Change is Urgently Needed – Governance Failures 15 The board has sought to entrench itself and block its largest shareholder, Paragon, to nominate directors at every step of the way by • Adopting both a poison pill and burdensome new advance notice bylaws The last
Slide 16: OPT management team can't get its story straight
Ocean Power Technologies, Inc. OPT management team can’t get its story straight • “We do not know whether we will be able to successfully commercialize our products and services or whether we can achieve profitability,” However, in the face of this proxy contest, management abruptly did a complete 1
Slide 17: Disingenuous Shareholder Communications
Ocean Power Technologies, Inc. Why Change is Urgently Needed – Disingenuous Shareholder Communications 17 OPT’s Misleading Statements… ... versus the Facts • OPT’s Board tells shareholders to protect their investment by voting for their Board. • OPT’s Board tells shareholders votes for Paragon will
Slide 18: OPT Lacks an Apparent Business Strategy
Ocean Power Technologies, Inc. Why Change is Urgently Needed - OPT Lacks an Apparent Business Strategy 18 The Problem… ...the Evidence • OPT has generated consecutive losses for nearly 30 years. • Management continues to operate a business with upside down margins that is structurally unable to earn
Slide 19: Paragon's Plan
Ocean Power Technologies, Inc. Paragon’s Plan Urgent Accountable Implement a disciplined, accountable and measurable capital allocation plan. Implement Eliminate and reduce all unneeded costs and take swift action to cease the losses at the business. Fix Focus resources on the potential of Marine Ad
Slide 20: Paragon's Plan
Ocean Power Technologies, Inc. Paragon’s Plan A bold transformation is needed to avoid a share price of zero • We believe the changes at the Board and our plan we outline will deliver a desperately needed catalyst to OPT leading to increased demand for the shares. • The implementation of our strateg
Slide 21: Paragon's Nominees are the Right Choice
Ocean Power Technologies, Inc. Paragon’s Nominees are the Right Choice 21 Paragon is nominating four qualified individuals who are aligned with shareholder interests to OPT’s board. Paragon director candidates possess the skills, experience and focus necessary to turn OPT around and to create a comp
Slide 22: Paragon's Track Record Speaks for Itself
Ocean Power Technologies, Inc. Paragon’s Track Record Speaks for Itself Our r esults show a complete alignment between management and shareholders • We have delivered results for our business and for our shareholders over the years. • We are extraordinarily confident in our belief that we can do the
Slide 23: Conclusion – A Call to Action
Ocean Power Technologies, Inc. Conclusion – A Call to Action 23 Top Five Reasons to Vote the Blue Card for Paragon Nominees 1. Long history of losses and the incumbent destruction of shareholder value. 2. Ineffective strategic vision . 3. Continued excessive compensation completely out - of - touch
Slide 24: To contact us, please email
Ocean Power Technologies, Inc. 24 To contact us, please email: jdepinto@allianceadvisors.com A llianceadvisors.com
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