Shares of nano-cap Co-Diagnostics Inc CODX, which uses its proprietary technology to design tests to locate genetic markers used by biotech companies, swung wildly in the past 24 hours.
Co-Diagnostics shares more than doubled Wednesday from $1.11 to $2.24 only to give back much of the gains Thursday.
Preferred Share Sale
The company announced Wednesday morning a transaction that will effectively eliminate its debt, and the sale of $1 million in preferred shares. The transaction to eliminate debt involved conversion of a $2 million note to preferred stock.
Together, the company said it will sell $3 million of preferred shares, convertible to common stock at $1.20 per share.
"This financing benefits our shareholders by providing additional capital to accelerate our growth strategy," said CEO Dwight Egan.
Direct Offering
Souring sentiment on Thursday was an announcement that it entered into definitive agreements with institutional investors for selling about 3.93 million shares at a price of $1.40 per in a registered direct offering.
The company expects to generate gross proceeds of about $5.5 million from the offering, which is expected to close on or about Feb. 4.
Co-Diagnostics shares were down 38.84 percent to $1.37 at time of publication. The company has a $17.6 million market cap.
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