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.
“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]