NEW YORK (GenomeWeb) — Co-Diagnostics announced today that it has sold $3 million worth of preferred stock in a transaction that eliminates the Salt Lake City, Utah-based company's debt.
According to Co-Diagnostics, the preferred shares are convertible into common stock at a price of $1.20 per share. The deal included negotiating the conversion of a $2 million note to preferred stock, as well as the sale of an additional $1 million of preferred stock for cash.
"This financing benefits our shareholders by providing additional capital to accelerate our growth strategy," Co-Diagnostics CEO Dwight Egan said in a statement. "The company's improved balance sheet also provides a strong foundation for continued momentum."
Since its 2017 initial public offering, Co-Diagnostics has been targeting developing markets for its core CoPrimer technology, which uses a proprietary chemistry that attaches primers to probes with a polyethylene, glycol-based linker to prevent the formation of primer-dimers and enable multiplexing.
Last year, the firm received CE-IVD marking for its Zika and tuberculosis tests, and it has been working on a test to identify and distinguish between Zika, dengue fever, and chikungunya infection.