The Utah-based company said it intends to use the net proceeds for the acquisition of PCR (polymerase chain reaction) equipment to be used in connection with the sales of reagents used for tests to diagnose infectious disease, including strains and mutations of the coronavirus.
In addition, the money will be used on finance research and development costs associated with the test development for additional pathogens and test menu expansion, and for working capital and other general corporate purposes.
Co-Diagnostic’s Logix Smart 2019-nCoV polymerase chain reaction tests employ a patented CoPrimer technology platform to detect the strains of the often fatal pneumonia-like virus, which has spread rapidly over the past several weeks, after first being identified in Wuhan, China.
The tests already work with a number of manufacturers’ PCR devices or DNA amplifiers and are available to thousands of laboratories on a research-use-only basis.
China reported 908 deaths and about 40,000 cases of the coronavirus. On Sunday alone, 97 people died, the highest daily death toll since the outbreak began. Almost 6,500 of the affected patients were in critical condition.
The World Health Organization declared the novel strain of the coronavirus a global health emergency on January 30, and on February 4, the US Food and Drug Administration granted authorization for the emergency use of in vitro diagnostic tests for the virus, after determining that the virus has significant enough potential to affect national security or public health.
As for the new financing scheme, Co-Diagnostics entered into definitive agreements with institutional investors for the purchase of 3,324,676 shares of its common stock at a purchase price per share of $3.08 in a registered direct offering priced at-the-market under the Nasdaq rules.
The closing of the offering is expected to occur on or about February 13, subject to the satisfaction of customary closing conditions.
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