ROCKVILLE, Md., April 25, 2022 (GLOBE NEWSWIRE) — OpGen, Inc.. (Nasdaq: OPGN, “OpGen”), a precision medicine company harnessing the power of molecular diagnostics and informatics to fight infectious diseases, today announced that its subsidiary, Curetis GmbH (“Curetis”) , and the European Investment Bank (EIB) plan to restructure the repayment of the first tranche which matured on April 22, 2022.
Under the currently contemplated terms of the restructured repayment plan, OpGen subsidiary Curetis would repay €5.0 million in cash in April 2022 and the remainder of the debt tranche amounting to approximately €8.35 million. euros or approximately $9 million at current exchange rates would be amortized. over the next 12-month period and paid in equal monthly installments of approximately €0.7 million in cash, beginning at the end of May 2022. Interest rates on the remaining debt would remain unchanged at 10% per year.
The parties also plan to increase the ownership percentage or PPI from its current level of 0.3% on the OpGen market capitalization then prevailing by June 2024 to 0.75% at that time. No other payment or consideration (including any participation) is contemplated under the currently proposed restructuring plan.
The second and third tranches of €3.0 million and €5.0 million in principal plus respective accrued deferred interest which mature and become payable in June 2023 and June 2024, respectively, remain unchanged at this day.
“After reviewing over half a dozen different structures and term sheets that have been presented to OpGen via multiple brokers and investors in addition to the EIB itself over the past few months, we believe this is the best way forward for OpGen,” commented Oliver Schacht, CEO of OpGen Inc. of our share is subject to significant pressure on the capital markets. We have also determined that it would not have been in the best interests of our shareholders to have a material excess on any convertible securities, either directly with the EIB or any other institutional investor at the time.
While the company expects to finalize a restructuring with the EIB on the aforementioned terms, no definitive agreement has yet been signed. The parties expect to enter into an amendment to the existing funding agreement or a side letter thereto, as soon as possible, memorizing the foregoing terms. However, there can be no assurance that the parties will ultimately reach an agreement regarding the contemplated restructuring or, if they do, as to the terms thereof.
About OpGen, Inc. OpGen, Inc. (Rockville, MD, USA) is a precision medicine company that harnesses the power of molecular diagnostics and bioinformatics to fight infectious disease. Together with our subsidiaries, Curetis GmbH and Ares Genetics GmbH, we develop and market molecular microbiology solutions that help guide clinicians with faster, actionable insights into life-threatening infections to improve patient outcomes and reduce the spread infections caused by multi-resistant microorganisms. , or MDRO. OpGen’s product portfolio includes Unyvero, Acuitas AMR Gene Panel and the ARES technology platform, including ARESdb, using NGS technology and AI-powered bioinformatics solutions for antibiotic response prediction.
For more information, please visit www.opgen.com.
This press release contains statements regarding the restructuring of certain borrowings from the EIB. These and other statements regarding OpGen’s future plans and objectives constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are intended to qualify for the safe harbor of liability established by the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties that are often difficult to predict, are beyond our control and may cause results to differ materially from expectations. Factors that could cause our results to differ materially from those described include, but are not limited to, the success of our marketing efforts, our ability to successfully, timely and cost-effectively develop, research and obtain , regulatory clearance to and market our product and service offerings, the rate of adoption of our products and services by hospitals and other healthcare providers, the fact that we may not effectively use proceeds from recent financings , the continued realization of the expected benefits of our business combination transaction with Curetis GmbH, the continued impact of COVID-19 on the Company’s operations, financial results and marketing efforts as well as capital markets and general economic conditions, the effect of military action in Russia and Ukraine on our distributors, associates and contractors service areas, our liquidity and working capital requirements, the effect on our business of existing and new regulatory requirements, and other economic and competitive factors. For a discussion of the most significant risks and uncertainties associated with OpGen’s business, please see our filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which are based on our expectations as of the date of this press release and speak only as of the date of this press release. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
OpGen: Oliver Schacht, President and CEO [email protected]
OpGen Press Contact: Matthew Bretzius FischTank Marketing and PR [email protected]
OpGen Investor Contact: Alyssa Factor Edison Group [email protected]