Co-Diagnostics, Inc. has entered into a loan agreement with J.J. Astor & Co. for senior secured convertible loans totaling up to $3.1 million. The initial closing provided $2.1 million in funding, with net proceeds of approximately $2.016 million intended for general working capital purposes. The loan is secured by a senior-priority lien on substantially all of the company's assets.
Key Details
- Financing Structure: The company received an initial loan of $2.1 million and issued a senior secured convertible promissory note with a principal amount of $2.835 million (reflecting a 1.35x factor rate). The company may borrow an additional $1.0 million after 60 days under similar terms.
- Key Terms: The notes are repayable in 30 weekly installments and are convertible into the company's common stock at the lender's option, at a price equal to 90% of the lowest 10-day volume-weighted average price (VWAP), subject to a floor price. In connection with the transaction, the company also issued 600,000 commitment shares to the lender.
- ATM Waterfall Agreement: Proceeds from the company's existing at-the-market (ATM) offering will be used for repayment. Under a waterfall agreement, 100% of net ATM proceeds will be remitted to a controlled account, with a specified portion applied to the notes until weekly payments are satisfied.