SQI Announces Closing of Private Placement of CDN $4.55 Million



TORONTO, Oct. 26, 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, today announced it raised gross proceeds of CDN $4.552 million through a non-brokered private placement (the "Private Placement") of 2,276,000 units ("Units") of the Company at a price of $2.00 per Unit, subject to regulatory approval.

Each Unit will consist of one common share and one common share purchase warrant.  Each common share purchase warrant will entitle the holder to purchase one common share at a price of $2.50 for a period of two years from the date of issuance, provided that if on any day that is 12 months following the date of issuance the 20-day volume weighted average trading price of the Company's common shares on the TSX Venture Exchange equals or exceeds $3.25, then upon the Company sending subscribers written notice of such date and issuing a news release announcing such date, the common share purchase warrants will only be exercisable for a period of 30 days following the date on which such written notice is sent to the subscribers.

In connection with the Private Placement, the Company paid Kingsdale Capital Markets Inc. a finder's fee equal to 6% of the gross proceeds and issued compensation warrants exercisable for 24 months from the Closing of the Private Placement to purchase 85,040 Units.

The Private Placement is subject to all necessary regulatory and stock exchange approvals. The securities being issued pursuant to the Private Placement will be subject to a four-month hold period in accordance with applicable Canadian securities laws.

SQI intends to use the net proceeds to fund the Company's product development and commercialization programs, sales and marketing, and for general working capital purposes.

"SQI's enhanced cash position improves our ability to support our customers in the long term, and supports the continued build-out of our portfolio of quantitative IVD autoimmune test panels for conditions such as vasculitis, lupus and IBD crohn's/ulcerative colitis, that are being developed to run on our SQiDworks platform," said Andrew Morris, Chief Financial Officer of SQI Diagnostics. "We are also excited to be launching our Dx Tools and Services business targeting new product and service revenue opportunities for co-developed OEM products and lab developed test diagnostic products, which we believe could accelerate our revenue ramp."

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.



This press release contains certain forward-looking statements, including, without limitation, statements containing the words "may", "plan", "will", "estimate", "continue", "anticipate", "intend", "expect", "believe", "in the process", "is subject to" 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, regulatory approval of the transaction, the launch of our Dx Tools and Services business, the build-out of our portfolio of quantitative tests, the acceleration of our revenue ramp, general economic and market segment conditions, competitor activity, technology changes and regulatory approvals. 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.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Neither 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.



SOURCE SQI Diagnostics Inc.

For further information:

Chief Financial Officer
Andrew Morris
416.674.9500 ext. 229

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890