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Co-Diagnostics shares climb after eliminating debt and unveiling stock sale

Investors are applauding the molecular diagnostics company's move to pay down all its debt via the conversion of a $2 million note to preferred shares
DNA strand
The Utah company makes technology for tests that focus on the detection and analysis of DNA and RNA

Co-Diagnostics Inc (NASDAQ:CODX) shares soared Wednesday after the molecular diagnostics company paid down its debt and announced the sale of $3 million of its preferred stock at $1.20 per share.

The transaction included the conversion of a $2 million note to preferred shares, which eliminated the company’s debt, as well as an additional sale of $1 million of preferred shares for cash.

READ: Co-Diagnostics shares soar as its technology is used in Stanford cancer study

“This financing benefits our shareholders by providing additional capital to accelerate our growth strategy,” said Dwight Egan, CEO of Co-Diagnostics, in a statement.

Based in Salt Lake City, Co-Diagnostics is a molecular diagnostics company that makes technology for tests that focus on the detection and analysis of DNA and RNA. The company also uses its proprietary technology to design specific tests to locate genetic markers.

Co-Diagnostics’ CoPrimer technology, for example, is being used by scientists at Stanford to improve their detection methods of the mutations which cause cancer. 

The shares more than doubled to $2.38 in afternoon trade on Wednesday.

Contact Ellen Kelleher at [email protected]

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