OpGen (NASDAQ: OPGN) stock surged 58% on Tuesday after news broke that David Lazar would invest $3 million in the company through preferred stock and take over as CEO.
OpGen (OPGN) has struck a deal with private investor David Lazar. The agreement involves the acquisition of 3 million shares of Series E Convertible Preferred Stock at $1.00 per share. This transaction will bring in gross proceeds of $3.0 million.
The company plans to use these proceeds to settle outstanding debts and liabilities. It will also fund other general corporate and operating activities.
On March 25, 2024, David Lazar made an initial payment of $200,000 for the purchase of 200,000 Series E Preferred Stock shares.
David Lazar will make an additional payment of $200,000 on or before April 8, 2024. He will then pay the remaining balance of $2.6 million until May 1, 2024. These payments are subject to the fulfillment of certain additional closing conditions.
Each Series E Preferred Stock share is convertible into 24 shares of OpGen’s common stock.
In conjunction with the investment, Mr. Lazar has been appointed to OpGen’s Board of Directors and will become CEO after the closing.
In addition, all prior members of the company’s board of directors, including Oliver Schacht as CEO, have resigned effective from the initial closing.
Moreover, OpGen has reached settlement agreements with the European Investment Bank (EIB) and Curetis, its subsidiary, and Curetis’ trustee in insolvency. These agreements pave the way for the settlement of outstanding liabilities, with OpGen committing to allocate $2 million of the financing proceeds to settle all outstanding debt owed to EIB and Curetis.
OpGen (NASDAQ: OPGN) Stock Movement
OPGN stock soared 57.89% to close at $0.75 on Tuesday. The traders had exchanged hands with 77,138,892 (77.13 million) shares compared to the average daily trading volume of 290.22K.
