Molecular diagnostics company OpGen on Monday announced the pricing of a public offering of an aggregate of 4,495,825 shares of its common stock (or pre-funded warrants) and common stock purchase warrants to purchase up to 4,495,825 shares of common stock at a combined public offering price of $.78 per share (or pre-funded warrant) and accompanying warrant.
The warrants will be exercisable on the effective date of stockholder approval of the issuance of the shares on exercise of the warrants, and will expire five years from the date of stockholder approval.
Gross proceeds of the offering, before the deduction of the placement agent’s fees and other expenses, are expected to be $3.5 million, the firm said.
OpGen intends to use the net proceeds to support the continued development, regulatory submissions, and commercialization of its products, particularly the Acuitas AMR Gene Panel test for isolates in the U.S., the Unyvero Platform and diagnostic tests, and the Ares Genetics database and service offerings; sales and marketing; investment in manufacturing and operations infrastructure; and repayment of debts.
The remaining proceeds will be used for working capital and other general corporate expenses, OpGen said.
The closing of the offering is expected to occur on or about May 4. H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.
In addition, OpGen will amend certain existing warrants to purchase up to an aggregate of 6,396,903 shares of its common stock that were previously issued in February 2018 through January 2023 and have exercise prices ranging from $2.65 to $7.54 per share, effective upon the closing of the offering. The amended warrants will have a reduced exercise price of $.78 per share, will be exercisable beginning on the effective date of stockholder approval of the issuance of the shares upon exercise of the warrants, and will expire five years from the date of stockholder approval.