Co-Diagnostics taps J.J. Astor for $2.1M convertible loan to fund operations
What's the deal? Co-Diagnostics, Inc.Dealroom has a profile for this one. Try Dealroom → has secured an initial $2.1 million through a senior secured convertible loan from J.J. Astor & Co.Dealroom has a profile for this one. Try Dealroom →, according to a Form 8-K filed on October 13, 2026. The agreement, signed on October 9, allows for up to $3.1 million in total principal funding.
The fine print: At closing, Co-Diagnostics issued a senior secured convertible installment note with an original principal of $2.835 million — a factor rate of 1.35 times the funded amount. After a 4% origination fee, net cash proceeds came to roughly $2.016 million.
What's the money for? The company plans to use the net proceeds for general working capital. The note is repayable in 30 weekly installments and secured by a senior-priority lien on substantially all of the company's assets.
The terms: J.J. Astor can convert portions of the note into common stock at 90% of the lowest 10-day volume-weighted average price, subject to Nasdaq floors. Co-Diagnostics also issued 600,000 commitment shares and must keep a minimum cash balance of $250,000 while the notes are outstanding.
Why now? Starting 60 days after signing, Co-Diagnostics may borrow an extra $1 million via a further note with an original principal of $1.35 million. Under a separate ATM Waterfall Distribution Agreement with Maxim Group LLCDealroom has a profile for this one. Try Dealroom →, all net at-the-market proceeds flow to a lender-controlled account, with the first $1 million payable to J.J. Astor.
The signal: The structure — high factor rate, weekly repayments, commitment shares, and a waterfall over future stock sales — points to a financing built for a company prioritising near-term liquidity. It ranks in the lower third of comparable rounds by size, underscoring a tightly-sized, terms-heavy deal rather than a growth raise.
Read more: kalkinemedia.com
Image credit: Co-Diagnostics
