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OpGen Sets New Price Range on Planned IPO; Sharply Lowers Anticipated Proceeds

NEW YORK (GenomeWeb) – OpGen lowered the price range on its planned initial public offering, resulting in a sharp drop in its anticipated net proceeds. 

In an amended prospectus filed with the US Securities and Exchange Commission on Thursday, the microbial genetics analysis firm said it anticipates offering 2.5 million units in its IPO at between $5.50 and $6.50 per unit, with net proceeds expected at about $12.6 million at the midpoint price of $6 per unit. Each unit consists of one share of OpGen's common stock and one warrant to purchase an additional share. 

If the offering's underwriter, the Maxim Group, exercises its overallotment option in full, net proceeds are estimated to be $14.7 million. 

Earlier this month, OpGen said that it planned to offer 3.75 million shares of its common stock in the IPO at a range of $8 to $10 per share, which would have resulted in net proceeds of about $30.5 million, or $35.2 million if the overallotment option was exercised in full. It filed to go public in March. 

OpGen said in its SEC document that the units will immediately and automatically separate upon issuance and the common stock and offered warrants will trade separately. The Gaithersburg, Md.-based firm plans to list its common stock under ticker symbol "OPGN" and its warrants under ticker symbol "OPGNW." Both would trade on the Nasdaq Capital Market. 

The firm plans to use approximately $5 million of the net proceeds for sales and marketing, including the expansion of its sales force to commercialize its multidrug resistance organisms (MDRO) gene test products and Lighthouse MDRO Management system, as well as for working capital and general and administrative purposes, OpGen said. Another $4 million will be used for R&D related to Lighthouse — a bioinformatics product that is still under development and slated for launch in the third quarter of this year — and other products in its pipeline. 

OpGen had $750,000 in cash and cash equivalents as of the end of Dec. 31, 2014.