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OpGen to Raise $3.4M in Direct Stock Offering

NEW YORK – Molecular diagnostics firm OpGen announced on Friday that it has entered into a securities purchase agreement with an unnamed institutional investor for a registered direct offering that is expected to raise $3.38 million in gross proceeds.

The company is offering 9,660,000 shares of its common stock and 33,810 shares of Series C mirroring preferred stock, as well as unregistered warrants to purchase up to an aggregate of 9,660,000 shares of common stock in a concurrent private placement, at a purchase price of $.35 per share. Each share of Series C stock has a stated value of $.01 per share and will automatically terminate when the company effects a reverse stock split of its shares of common stock, OpGen said in a statement. 

The warrants, meantime, have an exercise price of $.377 per share, will become exercisable six months after the date they are issued, and will expire 5.5 years after they're issued.

The offering is expected to close on Oct. 3, and H.C. Wainwright is acting as the exclusive placement agent. 

OpGen said that it expects to call a meeting of stockholders to approve a reverse stock split of the firm's common stock. The firm also noted that certain existing warrants issued to the investor to purchase up to an aggregate of 14,829,751 shares of common stock with exercise prices ranging from $2.05 to $65.00 per share will be amended once the registered direct offering is closed. The warrants, which have expiration dates between February 2023 and April 2027, will have a reduced exercise price of $.377 per share, will not be exercisable until six months after the offering closes, and will expire 5.5 years after the closing. 

The Rockville, Maryland-based company said it intends to use the proceeds to continue commercialization of its Acuitas AMR Gene Panel test in the US and to commercialize its other products, with a focus on the Unyvero platform and tests. It also will use the money to support further development and commercialization of the Ares Genetics database and support sales and marketing efforts. In addition, OpGen said it will invest in manufacturing and operations infrastructure to support sales and will repay certain outstanding debts. Remaining proceeds will be used for working capital and other general corporate purposes.