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Co-Diagnostics Eyes $8.5M in Initial Public Offering

NEW YORK (360Dx) – Molecular diagnostics firm Co-Diagnostics anticipates raising up to $8.5 million in net proceeds in a public offering of its stock, the firm said in an amended prospectus filed with the US Securities and Exchange Commission on Monday.

The Utah-based firm said that it plans to offer 1.3 million shares of its common stock at a price of between $6.35 and $6.75 per share. Net proceeds from the offering are expected at almost $7.4 million. If the underwriters on the offering exercise their options to purchase additional shares in full, net proceeds will increase to about $8.5 million, Co-Diagnostics said.

WallachBeth Capital and Network 1 Financial Services are the co-book running managers on the offering.

The firm intends to use the proceeds for clinical development, expansion of its lab facilities, and regulatory filings of new diagnostic tests. It also will use proceeds to increase sales and marketing operations and to create its own manufacturing facility to produce its reagents here, in India, and other locations in the developing world. Additionally, proceeds will be used to expand the availability of molecular diagnostic devices in developing nations under a rental program and for general corporate purposes.

Co-Diagnostics intends to list its common stock on the Nasdaq Capital Market under ticker symbol CODX.

The company develops and intends to manufacture and sell reagents for diagnostic tests that detect and analyze DNA and RNA. It also sells molecular diagnostic equipment from other manufacturers, it said in its prospectus.

Co-Diagnostics was founded in 2013 and licensed PCR technology from DNA Logix for the genetic analysis in the clinical, industrial, and biodefense markets. In 2015, the firm entered into a stock exchange agreement with Co-Diagnostics Founder and Chief Technology Officer Brent Satterfield to acquire DNA Logix, which he owned.

The company posted a net loss of $1.9 million in 2016 and had $998,737 in cash and $1.3 million in total assets, it said in its SEC filing.