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Co-Diagnostics Initiates $10.2M Direct Stock Offering

NEW YORK – Co-Diagnostics said on Tuesday that it has entered into definitive agreements with institutional investors for the purchase of approximately 3.2 million shares of its common stock at a purchase price of $3.08 per share in a registered direct offering priced at the market.

The Salt Lake City, Utah-based molecular diagnostics developer said gross proceeds from the offering are expected to be approximately $10.2 million.

The company intends to use the money to acquire PCR equipment to be used in connection with sales of reagents for tests used to diagnose infectious disease, including the 2019 novel coronavirus (2019-nCoV). The company will also use the proceeds for R&D costs associated with test development for additional pathogens, test menu expansion, and for working capital and other general corporate purposes.

HC Wainwright is acting as the exclusive lead placement agent for the offering, which is expected to close on or about Feb. 13.

Co-Diagnostics also said on Tuesday that it has sold screening tests for 2019-nCoV in undisclosed geographies. The company's Logix Smart 2019-nCoV PCR tests use highly specific targeting and the company's patented CoPrimer technology to detect the virus strain. It is compatible with various commercial PCR instruments and is currently available for research use only.

Shares of Co-Diagnostics finished Tuesday trading on Nasdaq down almost 18 percent at $3.26.

In late January the company closed a direct stock offering of 3.4 million shares for gross proceeds of about $5 million.