OpGen Modifies Terms of Debt with Merck Global Health Innovation Fund
GAITHERSBERG, Md., June 14, 2018 (GLOBE NEWSWIRE) -- OpGen, Inc. (NASDAQ:OPGN) today announced that it has negotiated modifications related to its $1,000,000 Second Amended and Restated Senior Secured Promissory Note (the “Note”), dated June 28, 2017, to extend the maturity of the note and to pay accrued interest through the issuance of shares of common stock. The Note is issued to Merck Global Health Innovation Fund, LLC (Merck GHI).
The modifications provide that (1) accrued and unpaid interest of $285,512.22 due as of July 14, 2018, the original maturity date, will be paid through the issuance of shares of OpGen’s common stock in a private placement transaction; and (2) the maturity date of the Note is extended - the Note will be paid in six semi-annual payments of $166,666.67 plus accrued and unpaid interest beginning on January 2, 2019 and ending on July 1, 2021, the Final Maturity Date. The number of shares of common stock to be issued will be determined after July 14, 2018 based on the 30-day average volume-weighted closing price of OpGen’s common stock, and issued by July 31, 2018. The interest rate remains at 10%, subject to increase to 15% upon an event of default. The Note is secured by all of the assets, including intellectual property, of the Company.
Evan Jones, OpGen’s chairman and CEO stated, “We are grateful to Merck GHI for its support over the past three years. The restructuring of this agreement, with payment in both stock and cash, is a prudent measure as we continue to execute on our business strategy.”
OpGen, Inc. is harnessing the power of informatics and genomic analysis to provide complete solutions for patient, hospital and network-wide infection prevention and treatment. For more information, please visit www.opgen.com.
This press release includes statements relating to OpGen’s obligations under the Note. These statements and other statements regarding OpGen’s future plans and goals 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 from 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 which may cause results to differ materially from expectations. For a discussion of the most significant risks and uncertainties associated with OpGen’s business, please review 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.