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Co-Diagnostics , Inc. (NASDAQ:CODX), a medical device company specializing in diagnostics, announced Monday an expansion of its existing equity distribution agreement. The Salt Lake City-based firm, known for its diagnostic equipment, has amended its prior arrangement to include Clear Street LLC as an additional sales agent alongside Piper Sandler & Co.
The amendment, effective as of Sunday, April 25, 2025, allows for the continued sale of common stock up to a total of $50 million. Since the original equity distribution agreement on March 16, 2023, Co-Diagnostics has sold 833,806 shares. Under the new terms, sales commissions are to be equally divided between the two agents. InvestingPro analysis shows the company maintains a strong liquidity position with a current ratio of 4.41, though it’s experiencing significant cash burn.
This move comes after the company’s registration statement, filed on March 16, 2023, and declared effective by the SEC on April 6, 2023. The registration enables the sale of common stock under the equity distribution agreement, which was further supplemented on October 18, 2024.
The updated plan of distribution reflects the addition of Clear Street and is filed with the SEC, replacing the previous plan. The amendment aims to facilitate the company’s ability to finance its operations and growth initiatives through periodic sales of its common stock.
Co-Diagnostics emphasizes that this report does not constitute an offer to sell or a solicitation of an offer to buy any securities. The sales are subject to market conditions and other factors, and the securities cannot be sold in jurisdictions where such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
The information in this article is based on the company’s SEC filing, which provides details on the financial instruments and corporate strategies involved. For deeper insights into Co-Diagnostics’ financial health and future prospects, including 10 additional key ProTips and comprehensive valuation analysis, check out the detailed Pro Research Report available on InvestingPro.
In other recent news, Co-Diagnostics has reported a challenging financial performance for the fourth quarter and full year of 2024, with revenue falling to $3.9 million from $6.8 million the previous year. The company recorded a net loss of $37.6 million, or $1.24 per share, which was wider than the anticipated loss of $10.8 million. Analysts at H.C. Wainwright have revised their price target for Co-Diagnostics to $1.00, down from $1.50, while maintaining a Neutral rating, citing an increase in the number of shares outstanding and a reduction in the company’s cash position. Co-Diagnostics recently withdrew its 510(k) application for its PCR COVID-19 test from the FDA due to concerns over the test’s shelf-life stability but plans to resubmit with new clinical data for over-the-counter clearance.
The company is also working on other tests, including those for tuberculosis and HPV, and has opened a new manufacturing facility in South Salt Lake. Despite the financial setbacks, Co-Diagnostics is focusing on developing and commercializing its PCR testing platform and aims to manage expenses while seeking additional funding. Analysts believe there is potential for FDA clearance of the Co-Dx PCR Pro instrument and COVID-19 test by 2026. The company has not provided future guidance but continues to pursue regulatory submissions and clinical evaluations for its test pipeline.
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