NEW YORK – OpGen said on Monday that it has priced a $3.5 million public offering of 4,495,825 shares of its common stock and accompanying warrants at a combined price of about $.78 per share and warrant.
The warrants will have the same exercise price per share. They will be exercisable starting on the date of stockholder approval of the issuance of the shares and expire five years later. The offering is expected to close on or about May 4, with H.C. Wainwright as the exclusive placement agent.
The Rockville, Maryland-based firm plans to use the proceeds to continue US commercialization of its Acuitas AMR Gene Panel test for bacterial isolates and to commercialize its other products, with a focus on the Unyvero platform and tests. The proceeds will also be used for research and development, clinical trials, and regulatory submissions for the company's Unyvero products, as well as for further development and commercialization of subsidiary Ares Genetics' database and service offerings.
OpGen added that it will also use the funding for directed sales and marketing efforts, to invest in manufacturing and operations infrastructure, and to repay outstanding debts of the company and its subsidiaries. The remaining proceeds will be used for working capital and other general corporate purposes.
The firm is also amending certain existing warrants to purchase up to 6,396,903 shares of its common stock that were issued between February 2018 and January 2023 with exercise prices ranging from $2.65 to $7.54 per share. The amended warrants will have a reduced exercise price of about $.78 per share, will become exercisable on the date of stockholder approval, and will expire five years later.