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.
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.
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