Deal funds sales, marketing, research, development, corporate purposes
By Devika Patel
Knoxville, Tenn., May 20 – OpGen, Inc. said it raised $10.36 million in the first tranche of a private placement of units. The deal priced for $10.36 million on May 12. Cowen and Co. was the lead agent, and Maxim Group LLC was co-placement agent.
The company sold 9,053,556 units of three-quarters of a warrant and either one common share or one non-voting convertible preferred share at $1.14375 per unit. It sold 6,744,128 stock units and 2,309,428 preferred units.
The whole, five-year warrants will each be exercisable at $1.3125, a 26.2% premium to $1.04, the May 11 closing share price.
Each preferred will have a stated value of $1.14375 and converts to common stock at $1.14375 per share, which is a 9.98% premium to the May 11 closing share price.
Investors included Merck Global Health Innovation Fund and Sabby Management, LLC.
OpGen management and some directors also participated in the financing.
Settlement of a second tranche is expected in mid-June.
Proceeds will be used for sales and marketing, research and development and general corporate purposes.
OpGen is a Gaithersburg, Md.-based company that uses molecular testing and bioinformatics to help combat multi-drug-resistant bacterial infections.
| Issuer: | OpGen, Inc.
|
| Issue: | Units of (a) either one common share or one non-voting convertible preferred share and (b) three-quarters of a warrant
|
| Amount: | $10,355,005
|
| Units: | 9,053,556
|
| Price: | $1.14375
|
| Warrants: | Three-quarters of a warrant per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.3125
|
| Conversion price: | $1.14375
|
| Agents: | Cowen and Co. (lead) and Maxim Group LLC (co-placement agent)
|
| Investors: | Merck Global Health Innovation Fund and Sabby Management, LLC
|
| Pricing date: | May 12
|
| Settlement date: | May 20
|
| Stock symbol: | Nasdaq: OPGN
|
| Stock price: | $1.04 at close May 11
|
| Market capitalization: | $15.1 million
|
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