Following the news, the company’s stock jumped 58% to $14.10 a share in pre-market trading. The stock closed up 106% on Thursday.
Under the registered direct offering priced at-the-market under Nasdaq rules, the company has struck agreements with institutional investors to purchase 470,000 shares of its common stock at $9 per share. It’s expected to close on March 2.
Co-Diagnostics intends to use the net proceeds for the acquisition of PCR (polymerase chain reaction) equipment and raw materials to be used in connection with the sale of tests used to diagnose infectious disease, including strains and mutations of coronavirus, as well as research and development costs associated with test development for additional pathogens and test menu expansion, and for working capital and other general corporate purposes.
HC Wainwright & Co is acting as the exclusive lead placement agent for the offering. Maxim Group LLC is acting as co-placement agent.
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