Currency in USD
Last close As at 17/03/2023
USD0.17
▲ 0.04 (30.77%)
Market capitalisation
USD7m
Research: Healthcare
After completing the 1:20 share consolidation, OpGen has announced a $7.5m equity issue to be closed by 11 January 2023. As part of the offering, OpGen will issue 2.6m common shares (or pre-funded warrants) at $2.90 per share, along with a similar number of Series A-1 and A-2 warrants. The warrants will be exercisable immediately at a strike price of $2.65 per share with respective expiry dates of five years and 18 months. OpGen plans to use the funds raised to accelerate commercialization efforts for its pipeline, capex and working capital needs, and to repay the outstanding European Investment Bank (EIB) loan. We will incorporate the fundraise in our valuation when the issue is completed.
OpGen |
New public offering to support funding needs |
Fundraising update |
Pharma and biotech |
9 January 2023 |
Share price performance Business description
Analysts
OpGen is a research client of Edison Investment Research Limited |
After completing the 1:20 share consolidation, OpGen has announced a $7.5m equity issue to be closed by 11 January 2023. As part of the offering, OpGen will issue 2.6m common shares (or pre-funded warrants) at $2.90 per share, along with a similar number of Series A-1 and A-2 warrants. The warrants will be exercisable immediately at a strike price of $2.65 per share with respective expiry dates of five years and 18 months. OpGen plans to use the funds raised to accelerate commercialization efforts for its pipeline, capex and working capital needs, and to repay the outstanding European Investment Bank (EIB) loan. We will incorporate the fundraise in our valuation when the issue is completed.
Year end |
Revenue |
EBITDA* ($m) |
PBT* ($m) |
EPS* |
P/revenue (x) |
P/E |
Net debt/ (cash) ($m) |
12/20 |
4.2 |
(19.6) |
(24.7) |
(31.5) |
1.8 |
N/A |
6.7 |
12/21 |
4.3 |
(20.4) |
(35.7) |
(23.4) |
1.8 |
N/A |
(14.4) |
12/22e |
3.2 |
(19.9) |
(25.4) |
(10.2) |
2.4 |
N/A |
2.8 |
12/23e |
5.3 |
(16.7) |
(21.8) |
(7.5) |
1.5 |
N/A |
24.0 |
Note: *EBITDA, PBT and EPS are normalized, excluding amortization of acquired intangibles, exceptional items and share-based payments. EPS adjusted for the 1:20 share consolidation in January 2023.
As a reminder, Opgen recently effected a 1:20 reverse stock split to regain Nasdaq’s compliance of maintaining a minimum threshold price of $1 per share. The stock consolidation resulted in the issued capital reducing from 58m to 2.9m common shares.
Management has now announced an equity raise and plans to issue 2,586,207 common shares or pre-funded warrants (89.2% of current shares outstanding) priced at $2.90 per share, with the aim of raising gross proceeds of $7.5m. The common shares will be accompanied by the issue of a similar number of Series A-1 and A-2 warrants, which can be exercised at $2.65 per share. The offer is expected to close on 11 January 2023.
OpGen plans to use the funds to support commercialization efforts for Unyvero and the Acuitas AMR Gene Panel, develop and commercialize Ares Genetics, support sales and marketing activities, infrastructure and manufacturing, and for capex and working capital needs. Importantly, we expect it will also use the proceeds for the EIB loan due in 2023 (€0.7m per month until April 2023, with the second tranche of €3m due in June 2023).
The cash injection should provide OpGen with additional headroom given the short cash runway (Q123, based on an anticipated operating cash burn of c $5m per quarter and €0.7m per month for the EIB loan repayment). However, we anticipate the need to raise c $12.5m in H223 and another $45m over FY23–26, before reaching the scale to fund operations from internally generated cash flow (FY27).
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Research: TMT
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