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Investing.com -- Co-Diagnostics Inc (NASDAQ:CODX) stock plunged 54.8% Tuesday after the molecular diagnostics company announced a registered direct offering that will significantly dilute existing shareholders.
The Utah-based company revealed it has entered into a securities purchase agreement with several institutional investors to sell 12,727,272 shares of common stock (or pre-funded warrants) at $0.55 per share. The offering, priced at-the-market under Nasdaq rules, is expected to raise approximately $7 million in gross proceeds before deducting placement agent fees and other expenses.
The offering price of $0.55 represents a substantial discount to the stock’s previous trading levels, triggering the massive selloff. Maxim Group LLC is serving as the sole placement agent for the transaction.
Co-Diagnostics stated it intends to use the proceeds for working capital and general corporate purposes. The offering is expected to close around October 29, 2025, subject to customary closing conditions.
The company, which specializes in developing molecular diagnostic tests through its patented platform, has not provided specific details on how the funds will be allocated within its operations. The significant share dilution appears to have overshadowed any potential benefits from the capital raise, as reflected in the sharp stock decline.
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