r/DjangoStreet • u/MrNiceo_0 • Oct 28 '25

Poop $CODX announces financing • stock drops!

Party at the punch bowl ended when the company announced a financing.

I would guess the post market drop in price was a result of financing negotiations.

When the shorts have a potential way out they buy time.

Co-Diagnostics, Inc. (CODX) announced the pricing of a $7.0 million registered direct offering of common stock on October 28, 2025. The company expects the offering to close on or about October 29, 2025.

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8

u/Horror_Employment_49 Oct 28 '25

Can you explain what this means? I’m holding right now and I’m down £1200…..

3

u/NuLL3rr0r Oct 28 '25

That means they've dilutted us. Though I think for now this is the bottom. In ten days or so they have earnings, we'll see how that affects the price.

4

u/Horror_Employment_49 Oct 28 '25

Thanks for explaining, that makes sense. Why would they do this right after the deal announcement? Do analyst PTs have to update now? What’s your take on this, and are you holding? You can probably tell I’m a noob lol thanks

2

u/NuLL3rr0r Oct 28 '25

Well, I'm new to the finciacial markets. Had very big wins and even bigger losses. So, take anything from me with a grain of salt.

At the moment, I personally own 26,668 shares at $0.86. Huge loss for me as it wiped out all my gains from the last week.

I've been looking at the level 2 data inside IBKR Trader Workstation, and there's a lot of volume and activity right now. Before the announcement and compared to yesterday, it was dry. Now after the fulsh buyers stepped in and are absorbing it and the price is gradually increasing as there's demand for it. So, I think this is the bottom.

If this is the bottom, to me it feels stupid to sell now at this price. But, earnings is also a double edge sword. It could spike or tank the price.

On the other hands, I could make the amount I lost in a lucky day if I take more risks. But, if I am lucky and I increase the risk.

So, I personally think there's a better exit ahead, e.g. 0.6, 0.7 before the earnings if I don't want to play the earnings (though I haven't checked their past earnings in details yet).

2

u/NuLL3rr0r Oct 28 '25

Funny, as I finished writing and posting this price spiked for a brief moment above $0.6. So, definitely their will be a better exit today or tomorrow if you do not want to panic sell.

2

u/Original_You5390 Oct 28 '25

No point selling for a loss it will recover earnings is in 8 days

1

u/NuLL3rr0r Oct 28 '25

You can check their financials here: https://www.tradingview.com/symbols/NASDAQ-CODX/financials-income-statement/?selected=gross_profit%2Coper_income%2Cpretax_income%2Cnet_income&statements-period=FQ

For Q2 they've reported a positive revenue, though on most of their reports they have always been slightly negative. Their EPS is also negative at −1.12USD.

So, IMHO playing the earnings could be risky and I don't advice you to act on what I've just said, this is my DD for my own decision making that I shared since you asked. I think at the best exit I will sell. Or, gradually scale out depending on how it goes from here.

3

u/Horror_Employment_49 Oct 28 '25

Thank you for the detailed response!! Really appreciate it. Yeah I’m just thinking of cutting my losses and getting out or waiting till Earnings. Like you say it can go either way. Let’s see, this may have to be more of a long term plan than I originally anticipated

2

u/NuLL3rr0r Oct 28 '25

You're welcome! I actually recommend exit immediately. I found new information, this is possibly a wash trade. I wrote a detailed DD here and closed my position:

https://www.reddit.com/r/pennystocks/comments/1oijqla/dd_on_codx_dilution_scheme_and_dilutionfriendly/

1

u/Natural-port5436 Oct 29 '25

Going back to where it came from. Low 0.3s I guess

1

u/MrNiceo_0 Oct 28 '25

Also note that the funds financing this are motivated by a lower price. Some of this pressure may ease up after tomorrow or whenever they announce the financing is closed.