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Chembio renews stock filing; has no plan to sell more shares

Chembio Diagnostic Systems Inc. makes rapid tests for

Chembio Diagnostic Systems Inc. makes rapid tests for HIV and other diseases. Photo Credit: Newsday / John Paraskevas

Chembio Diagnostic Systems Inc. has made a filing with the Securities and Exchange Commission renewing authorization to sell more stock. However, the company’s chief executive said Friday there are no plans to sell more stock.

“This is simply an administrative action. We have no plans to issue more shares,” CEO John J. Sperzel said.

The Medford-based manufacturer of rapid tests for HIV, syphilis, malaria and other fever illnesses had a stock market value of $59.4 million as of Thursday night.

Chembio shares closed up 21 cents, or 3.6 percent, to $5.99 in Nasdaq trading on Thursday. The company sent an email message to investors after the 4 p.m. close of regular trading.

The company said it would use any proceeds — when and if it issues shares — to develop products, purchase or license complementary technologies, expand operations and for general purposes such as marketing and working capital.

The filing was a renewal of an earlier authorization for a potential offering. The filing said the amount would be up to $35 million.

Chembio reported a loss of $2.4 million last year on sales of $24 million.

CORRECTION: An earlier version of this story misstated the company’s intention to issue stock.

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