NEW YORK – Molecular diagnostic firm OpGen's subsidiaries Curetis and Ares Genetics have filed for bankruptcy, according to documents filed with the US Securities and Exchange Commission on Tuesday.
The company said it has been unsuccessful in its attempts to sell the business or assets of Curetis and Ares Genetics and in its efforts to access additional capital to continue its operations. Curetis filed a petition for bankruptcy protection with the district court of Stuttgart, Germany, while Ares Genetics filed with the commercial court in Vienna.
The insolvency administrators appointed by the courts will assume control over the assets and liabilities of both businesses, eliminating the authority and power of OpGen to act on behalf of Curetis and Ares, the company said. If the preservation and sale of the businesses through the bankruptcy proceedings is unsuccessful, the assets of both businesses will be liquidated.
Last month, OpGen's share price surged after it announced that it would raise $1.0 million in a private placement with an unnamed investor. The offering was linked to negotiations with the investor about a possible strategic transaction. The company also noted in a separate SEC document filed last month that Curetis received an advance payment of €750,000 ($792,000) from the sale of multiple Unyvero A50 PCR-based instruments to a strategic partner related to the negotiation of a possible strategic transaction involving Curetis and Ares Genetics.
In June, OpGen received notice from Nasdaq that it was not in compliance with the requirement for a minimum bid price of $1.00 per share over 30 consecutive business days.