Paragon Technologies Issues Statement to Shareholders of Ocean Power Technologies Regarding the Shameless Entrenchment Actions of the OPTT Board - Seite 2

In its proxy statement filed with the SEC, OPT claims that it expects to spend $2.9 million in connection with mounting a defense against Paragon's election campaign, and that it has spent $1.9 million to date. True to form, these disclosures appear to be purposefully misleading. OPT states that these amounts exclude "amounts normally expended by OPT for a solicitation for an election of directors" and exclude amounts expended by OPT in its "defense against Paragon's two litigation matters," which OPT could have avoided by acting in good faith. We believe the accurate and honest amount that OPT will waste is likely over $6 million. With an OPT balance of cash and short-term investments of $26.7 million disclosed in its last 10-Q and annual losses of $26.3 million and growing, the OPT board appears to see fit to spend over $6 million to block the right of shareholders to vote on an alternate slate of directors.

Shareholders should ask themselves why OPT's Board and CEO continue to tout progress at OPT while the Company hemorrhages losses that are likely leading OPT to insolvency if significant and immediate changes are not made?

And if the OPT Board disagrees with us about the future solvency of OPT, why did the Company last week announce a plan to sell up to an additional $100,000,000 in stock, while already having an ongoing ATM offering of up $13.8 million?

OPT is losing more money as revenues increase!

During Mr. Stratmann's tenure as CEO, OPT's share price has cratered from $2.37 per share to $0.36 - a decline of 85%.

During fiscal years 2022 and 2023, OPTT has lost an astonishing $45 million, incurring $50 million in expenses to bring in $4.5 million in revenues. OPT's Board has funded these losses and their growing salaries, fees, and bonuses by selling over 25 million shares of OPT stock.

Now the Board tells shareholders to expect potential profitability in 2025? What about 2024? More losses, a stock price going closer to zero, and desperately selling more equity driving the share price lower?

Yet, OPT is telling shareholders the "strategy is working!" and that OPT will achieve "positive cashflow…6 quarters from today using current cash available." How can shareholders trust anything that comes from this Board and management team? How can you tell us a strategy is working when the losses are increasing?

We believe under the current Board and leadership, OPT is headed for insolvency in 2024. and that the Board is continuing to promote its false narrative to shareholders about potential profitability in 2025.