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Co-Diagnostics moves forward with $5M offering priced at-the-market

The proceeds will go into expanding the firm’s infectious disease testing, and vector control verticals, and fuel sales and technology licensing

Co-Diagnostics - Co-Diagnostics moves forward with $5M offering priced at-the-market
The company also said the money would fund additional 'applications for its technology in markets related to liquid biopsy and next-gen sequencing' and for working capital

Co-Diagnostics Inc (NASDAQ:CODX), a molecular diagnostics company, said Friday that it has struck definitive agreements with institutional investors for buying 3,448,278 shares at a purchase price per share of $1.45 in a registered direct offering priced at-the-marked under the Nasdaq rules.

In a statement, the Salt Lake City, Utah-based company said the closing of the offering is expected to occur on or about January 28, subject to the satisfaction of customary closing conditions.

HC Wainwright & Co is acting as the exclusive lead placement agent for the offering. Maxim Group LLC is acting as co-placement agent.

READ: Co-Diagnostics still a Buy on launch of in vitro diagnostic tests in India: HC Wainwright

The gross proceeds to the company, before deducting placement agent fees and other offering expenses, are expected to be approximately $5 million.

Co-Diagnostics will use the proceeds for commercializing and expanding its infectious disease testing, and vector control verticals, accelerating sales and technology licensing activities.

It also said the money would fund additional “applications for its technology in markets related to liquid biopsy and next-gen sequencing” and for working capital.

Co-Diagnostics shares rocketed nearly 73.4% higher to $1.96 on Thursday afternoon after it has completed the principle design work for a genetic screening test to detect the deadly Wuhan coronavirus. 

The test was developed using Salt Lake City company’s PCR-based Co-Primer technology and proprietary software system.

The advanced diagnostics technology company’s tests work by detecting and analyzing nucleic acid molecules in DNA or RNA in order to locate specific genetic markers.

Contact the author Uttara Choudhury at [email protected]

Follow her on Twitter: @UttaraProactive 

Quick facts: Co-Diagnostics

Price: 3.32 USD

NASDAQ:CODX
Market: NASDAQ
Market Cap: $71.68 m
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