NEW YORK, NY / ACCESSWIRE / January 30, 2019 / Co-Diagnostics, Inc., (CODX) a molecular diagnostics company with a unique, patented platform for the development of molecular diagnostic tests, capped a volatile month of trading with some positive financial news. A recent sale of $3 million of preferred shares effectively eliminated the company's debt by converting $2 million of debt to preferred stock; the sale also included $1 million of preferred shares for cash. The transaction was described by Co-Diagnostics CEO in the official announcement as beneficial to shareholders by accelerating the company's growth strategy.
All preferred shares are convertible to common stock at a fixed price of $1.20/share. Debt elimination plus a warrantless capital infusion together add up to an improved balance sheet, and one that objectively presents a much healthier snapshot of the company's financial state.
Remarks by Co-Diagnostics CEO Dwight Egan in the company's press announcement included the belief that ''This exciting era of the Company's expansion will continue as we build on our notable scientific, regulatory, and strategic milestones from 2018. The Company's improved balance sheet also provides a strong foundation for continued momentum.''
Pricing the conversion at a premium to the previous day's close of $1.11 does appear to reflect bullish confidence on behalf of all parties involved that the share price will follow the company's continued progress in the key growth areas they have previously identified, notably: infectious disease testing, agrigenomics, liquid biopsy and NGS applications. This growth is expected to be made possible by the significant advantages of the company's patented CoPrimer™ technology compared to other molecular diagnostics, and the adoption of that technology through the sale of diagnostic tests and technology license agreements.
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