Item 1.01 Entry into a Material
Definitive Agreement.
As previously disclosed, on September
4, 2019, OpGen, Inc. (the “Company”) entered into a business combination transaction pursuant to an Implementation
Agreement (the “Implementation Agreement”), by and among the Company, Curetis N.V., a public company with limited
liability under the Laws of the Netherlands (“Curetis”), and Crystal GmbH, a private limited liability company organized
under the laws of the Federal Republic of Germany and wholly owned subsidiary of the Company (the “Purchaser”). Under
the Implementation Agreement, the Company agreed to assume, as a condition to closing the transactions under the Implementation
Agreement, all of the outstanding convertible notes (the “Convertible Notes”) issued by Curetis in favor of YA II
PN, LTD (“Yorkville”), pursuant to that certain Agreement for the Issuance of and Subscription to Notes Convertible
into Shares and Share Subscription Warrants, dated October 2, 2018, by and between Curetis and Yorkville.
On February 24, 2020, the Company
entered into an Assignment of the Agreement for the Issuance of and Subscription to Notes Convertible into Shares (the “Assignment
Agreement”) with Curetis and Yorkville. The Assignment Agreement satisfies the Company’s condition to closing of assuming
the Convertible Notes and provides that, effective as of the closing of the transactions contemplated by the Implementation Agreement,
the Company will assume all of the outstanding Convertible Notes. In addition, pursuant to the Assignment Agreement, upon assumption
of the Convertible Notes by the Company, the Convertible Notes will cease to be convertible into shares of Curetis and will instead
be convertible into shares of the Company’s common stock, par value $0.01. The Assignment Agreement provides that an amount
of 500,000 shares of the Company’s common stock that comprise a portion of the consideration payable by the Company under
the Implementation Agreement will be reserved for issuance under the Convertible Notes. The Company also agreed to register for
resale up to 1,000,000 shares of Company common stock issuable upon conversion of the Convertible Notes within the later of 60
days following the later of the filing of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019
and the closing of the transactions contemplated by the Implementation Agreement.
Each Convertible Note has a maturity
of 12 months from its date of issuance. Curetis, or after closing of the transaction contemplated by the Implementation Agreement,
the Company, has the right to extend such maturity by an additional 12-month period, while paying a cash fee equal to 5% of the
principal amount of the relevant Convertible Notes. Subject to certain limitations, the maturity period can be extended up to
four times.
The Convertible Notes shall not accrue
interest, except in the case of an event of default under the Convertible Notes, in which case the Convertible Notes shall accrue
default interest at a rate of 15% per annum until the earlier of the date that the event of default is cured or the date on which
the Convertible Notes have been fully converted or redeemed.
The Convertible Notes may be converted
at any time until they are fully redeemed. Upon conversion of one or more Convertible Notes into shares of the Company’s
common stock, the number of Company shares will be calculated by dividing the aggregate principal amount of the relevant Convertible
Notes by 93% of the lowest daily volume weighted average price of the Company common stock on the Nasdaq Capital Market over the
10 trading days prior to the conversion date.
The Convertible Notes may be freely
transferred, except to retail investors, and subject to compliance with applicable securities laws. The Convertible Notes contain
anti-dilution protection, which protects the holder of the security from equity dilution resulting from later issues of shares
at a lower price or value than that provided for in the security. The protection in the Convertible Notes takes the form of tying
the conversion price of the Convertible Notes to the prevailing market price of the underlying shares of Company common stock
so that changes to the share price due to share issuances, share splits or other potentially dilutive events will result in a
corresponding change in the number of shares of Company common stock issuable upon conversion of a Convertible Note.
As of February 24, 2020, an aggregate
amount of €1.3 million of unconverted Convertible Notes was outstanding.
The foregoing description of the
Assignment Agreement is only a summary and is qualified in its entirety by reference to the complete text of the Assignment Agreement,
which is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated by reference herein.