Co-Diagnostics (CODX) shares dropped approximately 21% during early trading on Monday. The stock price fell to $6.71 following a Securities and Exchange Commission (SEC) filing.
The filing registers the potential resale of nearly 5 million shares by institutional investors. These investors originally purchased the stock and warrants through a private placement completed in late May.
Co-Diagnostics will not receive any proceeds from these secondary sales. The registration allows investors to sell their discounted holdings on the open market, creating significant downward pressure by increasing the available share supply.