SQI Diagnostics Announces It Will Not Proceed With Financing

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TORONTO, Oct. 5, 2011 /CNW/ - SQI Diagnostics Inc. ("SQI" or the "Company") (TSX-V: SQD), a life sciences company that develops and commercializes proprietary technologies and products for advanced microarray diagnostics, announced today that it will not proceed with its previously announced financing and has withdrawn its preliminary short form base PREP prospectus filed with the Ontario Securities Commission and has withdrawn the corresponding registration statement on Form F-10 filed with the U.S. Securities and Exchange Commission.   The Company is considering whether to continue to pursue its previously announced proposed United States listing of its common shares.

In light of the withdrawal of the prospectus and registration statement and the termination of the financing, effective October 6th, the closing conditions to the Company acquisition of Scienion AG, a German-based microarray manufacturing equipment and microarray print and development services, will not have been met, and the Company therefore does not currently expect to complete the acquisition as contemplated.  The closing of the transaction was subject to a number of closing conditions and regulatory approvals, including the closing of a financing in the amount of $30 million and the closing of the transaction no later than October 5, 2011.

SQI and Scienion are currently evaluating a variety of partnering structures allowing the two companies to develop sales opportunities of mutual interest that combine their complementary technologies to solve customer needs for turn-key microarray assays and automated platform solutions.

"Given the current market conditions we have determined it prudent to focus on growing our business and we intend to re-evaluate our strategic initiatives on an on-going basis," said Claude Ricks, Chief Executive Officer of SQI Diagnostics. "We believe that our marketable microarray diagnostic product solutions and our expanding development pipeline provide ample opportunity for SQI to continue its emergence as a leader in the global automated, multiplex diagnostics testing market.

About SQI Diagnostics

SQI Diagnostics is a life sciences company that develops and commercializes proprietary technologies and products for advanced microarray diagnostics.  The Company's proprietary microarray tests and fully-automated systems are designed to simplify protein and antibody testing workflow, increase throughput, reduce costs and provide excellent data quality.  For more information, please visit www.sqidiagnostics.com. The contents of the Company's website are specifically not incorporated by reference in this press release.

FORWARD-LOOKING INFORMATION

This press release contains certain forward-looking statements, including, without limitation, statements containing the words "may", "plan", "will", "estimate", "continue", "anticipate", "intend", "expect", "in the process" and other similar expressions which constitute "forward-looking information" within the meaning of applicable securities laws.  Forward-looking statements reflect the Company's current expectation and assumptions, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated.  These forward-looking statements involve risks and uncertainties including, but not limited to, whether we will continue to pursue a United States listing of our common shares, our expectations regarding whether we will develop partnering or other structures with Scienion, whether we will be able to grow our business, our expectations regarding the acceptance of our products by the market, our expectations regarding the progress and the successful and timely completion of the various stages of the regulatory approval process, our strategy to develop new products and enhance the capabilities of existing products, our strategy with respect to research and development, the impact of competitive products and pricing, new product development, and uncertainties related to the regulatory approval process.  Such statements reflect the current views of the Company with respect to future events and are subject to certain risks and uncertainties and other risks detailed from time-to-time in the Company's ongoing filings with the securities regulatory authorities, which filings can be found at www.sedar.com.  Actual results, events, and performance may differ materially.  Readers are cautioned not to place undue reliance on these forward-looking statements.  The Company undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise, except as required by applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.  

For further information:
Chief Financial Officer
Andrew Morris
416.674.9500 ext. 229
amorris@sqidiagnostics.com
Media and Investor Relations
Adam Peeler
416.815.0700 ext. 225
apeeler@equicomgroup.com