Fresh panic has surfaced with regards to the coronavirus this week after the virus spread to more countries outside of China. The movement has affected certain stocks, one of which has been Co-Diagnostics (NASDAQ:CODX), with CODX stock flying.
Investors Cheer the News
This morning it emerged that Co-Diagnostics Inc (NASDAQ:CODX) has come up with a financial plan that is going to raise $4.2 million so that the company can start selling its coronavirus detection kits. This is a significant development for the company since the coronavirus has spread to many countries, and CODX stock duly jumped as much as 85% today as investors piled on to it. The company is going to make an offering of its common stock to institutional investors in order to raise the cash.
According to reports, Co-Diagnostics has already signed agreements with institutional investors for the sale of a total of 4,70,000 shares of its common stock at a price of $9.00 a share. The share offering is going to end on March 2.
The company is going to use the money from the offering to buy raw materials and polymerase chain reaction (PCR) equipment, which is going to be vital for selling the tests meant to detect the coronavirus infection.
CODX stock has been in the middle of a highly impressive rally for most of this week. Earlier, Co-Diagnostics announced that that the relevant authorities in Europe have approved its PCR Test for detecting the coronavirus. The Chief Executive Officer of the company, Dwight Egan, stated that since the announcement of the test around a month ago, the company has received “overwhelming interest” from all across the globe. It is a significant development for the company, considering the fact that cases of the coronavirus infection were discovered in Italy earlier this week.
The approval also sparked a highly impressive rally in CODX stock, which has gained as much as 445% since then.
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