PreMD Inc. Announces Secured Debenture Financing



    TORONTO, Sept. 29 /CNW/ - PreMD Inc. (TSX: PMD; PREMF.pk) today announced
that it has entered into an agreement with Midsummer Investment, Ltd. with
respect to an offering of approximately CDN$500,000 of secured debentures (the
"Debentures"). Several additional existing institutional, qualified investors
and insiders have also agreed to participate. The proceeds from the private
placement are to be used for general corporate purposes.
    "We have been actively evaluating multiple sales and distribution options
for our PREVU technology, and have been involved in several discussions. We
remain focused on expanding the market for our existing products in the
cosmetics industry while advancing our pipeline of cancer detection products
towards the conclusions of the three pivotal clinical trials that are expected
this fall," said Brent Norton, president and CEO of PreMD. "This financing
should enable us to carry forward with our goals into 2009 while we implement
our plans to monetize various tangible and intangible assets."
    The Debentures mature 12 months after the date of issuance at an amount
equal to CDN$1,100 per CDN$1,000 principal amount and will be secured against
the assets of the Company. The Debentures will contain certain accelerated
pre-payment provisions at the option of the holders or the Company. PreMD will
also issue approximately 6.7 million common share purchase warrants (the
"Warrants"), each Warrant being exercisable for a period of three years into
one common share at a price equal to 100% of the 5-day volume-weighted average
price of the common shares on the Toronto Stock Exchange prior to closing. The
sale of the Debentures and Warrants is expected to close on or before
October 3, 2008 subject to the satisfaction of certain closing conditions and
any necessary regulatory approvals from the Toronto Stock Exchange.
    The common shares issuable upon exercise of the Warrants will be subject
to a Canadian statutory hold period of four months and a day after the closing
date. In addition, neither the Debentures nor the Warrants have been
registered with the United States Securities and Exchange Commission (the
"SEC") or the securities commission of any state in reliance upon one or more
exemptions from the securities registration requirements pursuant to the
Securities Act of 1933, as amended (the "US Securities Act"), and,
accordingly, may not be offered or sold except pursuant to an effective
registration statement under the US Securities Act or pursuant to an available
exemption from, or in a transaction not subject to, the registration
requirements of the US Securities Act and in accordance with applicable state
securities laws.

    About PreMD Inc.

    PreMD Inc. is a leader in predictive medicine, dedicated to developing
rapid, non-invasive tests for the early detection of life-threatening
diseases. PreMD's cardiovascular products include PREVU(*) POC and PREVU(*) LT,
both non-invasive skin cholesterol tests. The Company's cancer tests include
ColorectAlert(TM), LungAlert(TM) and a breast cancer test. PreMD's head office
is located in Toronto, Ontario and its research and product development
facility is at McMaster University in Hamilton, Ontario. For more information
about PreMD, please visit www.premdinc.com.

    This press release contains forward-looking statements. These statements
involve known and unknown risks and uncertainties, which could cause the
Company's actual results to differ materially from those in the
forward-looking statements. Such risks and uncertainties include, among
others, the successful development or marketing of the Company's products, the
competitiveness of the Company's products if successfully commercialized, the
lack of operating profit and availability of funds and resources to pursue R&D
projects, the successful and timely completion of clinical studies, product
liability, reliance on third-party manufacturers, the ability of the Company
to take advantage of business opportunities, uncertainties related to the
regulatory process, and general changes in economic conditions. In addition,
while the Company routinely obtains patents for its products and technology,
the protection offered by the Company's patents and patent applications may be
challenged, invalidated or circumvented by our competitors and there can be no
guarantee of our ability to obtain or maintain patent protection for our
products or product candidates.
    Investors should consult the Company's quarterly and annual filings with
the Canadian and U.S. securities commissions for additional information on
risks and uncertainties relating to the forward-looking statements. Investors
are cautioned not to rely on these forward-looking statements. PreMD is
providing this information as of the date of this press release and does not
undertake any obligation to update any forward-looking statements contained in
this press release as a result of new information, future events or otherwise.
    (*) Trademark

    %SEDAR: 00007927E          %CIK: 0001179083




For further information:

For further information: Ron Hosking, Vice-President Finance and CFO,
Tel: (416) 222-3449 ext. 24, Email: rhosking@premdinc.com; Brent Norton,
President & CEO, Tel: (416) 222-3449 ext 22, Email: bnorton@premdinc.com

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PREMD INC.

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