NEW YORK – Molecular diagnostics firm Co-Diagnostics announced Friday that it has entered into a definitive agreement with institutional investors to purchase its stock in a direct offering.
The Salt Lake City, Utah-based firm will sell about 3.5 million shares of its common stock, at $1.45 per share. The offering is expected to close on or about Jan. 28.
Co-Diagnostics expects to use the approximately $5 million in proceeds to further commercialize assays in the infectious disease market, as well as the agriculture and vector testing markets. Additionally, the firm said it will accelerate sales and technology licensing activities and develop additional applications for its technology in markets related to liquid biopsy and next-generation sequencing.
Co-Diagnostics recently expanded internationally in India and Africa. The firm's shares on the Nasdaq has risen sharply on Thursday after it announced it had developed an assay for 2019-nCoV, the novel coronavirus being monitored for pandemic potential.
In early Friday morning trading, though, its stock retreated about 17 percent to $1.69 per share.
The underwriters for the offering is HC Wainwright, who is the exclusive lead placement agent, and Maxim Group, who is the co-placement agent.