OpGen faces Nasdaq delisting, to trade OTC

Published 27/12/2024, 14:00
OpGen faces Nasdaq delisting, to trade OTC

OpGen Inc (OTC:OPGN)., a medical laboratory services provider, is set to be delisted from the Nasdaq Capital Market following a ruling by the Nasdaq Listing and Hearing Review Council (Listing Council). The company, which had previously been notified of non-compliance with Nasdaq's minimum stockholders’ equity requirement, saw its appeal to the Listing Council denied.

The decision comes despite OpGen's efforts to regain compliance after AEI Capital Ltd. acquired a controlling interest in the company. The Nasdaq Hearings Panel (Panel) had initially decided to suspend trading and delist OpGen's securities due to the non-compliance. Although OpGen appealed the Panel's ruling, the Listing Council upheld the decision, leading to the impending delisting. InvestingPro analysis reveals the company is quickly burning through cash, with revenue declining by 58.77% in the last twelve months.

OpGen's common stock, which had been trading under the ticker symbol OPGN, will continue to be available on the OTC Markets Group under the same symbol following the delisting. Currently trading at $0.62, the stock has fallen 85.99% over the past year and sits near its 52-week low, far below its 52-week high of $9.90. The company has expressed its disagreement with the Listing Council's verdict but plans to reapply for Nasdaq listing once it meets the necessary requirements.

This development was disclosed in an 8-K filing with the U.S. Securities and Exchange Commission (SEC). The company also issued forward-looking statements cautioning that there is no guarantee of successful relisting on Nasdaq.

OpGen's management, led by Chairman and CEO John Tan Honjian, has not provided a specific timeline for when they expect to reapply for Nasdaq listing.

OpGen has not made any commitments regarding the future listing of its securities, and the situation remains subject to change based on several factors, including meeting Nasdaq's listing standards. The information in this article is based on the latest SEC filing by OpGen.

In other recent news, OpGen Inc has been making significant changes in its leadership and financial structure.

The company announced the appointment of Mohd Azham Azudin as Chief Operating Officer and Gillian Tan Rou Yee as Company Secretary, in an effort to strengthen its operational and governance frameworks amid revenue decline. OpGen also secured an additional $6 million in funding and extended its securities purchase agreement with AEI Capital Ltd. until the end of 2025, potentially raising the total financing under the agreement to $9 million.

The company has also undergone a significant reshuffle in its leadership and ownership structure, with former CEO and Chairman, David Lazar, selling his shares to AEI Capital Ltd. This transaction led to AEI Capital Ltd. increasing its stake in OpGen to approximately 49%, with a potential rise to about 80% upon acquisition of the remaining shares of Series E Stock. John Tan, a designee of AEI Capital Ltd., was appointed as the new CEO, Chairman, and Director of OpGen.

Additionally, OpGen has restated its Q1 2024 financials due to an accounting error, a decision made in consultation with its board of directors and independent registered public accounting firm.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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