SQI Announces Private Placement to Raise CDN $5 Million

TORONTO, Aug. 6 /CNW/ - SQI Diagnostics Inc. ("SQI" or the "Company") (TSX-V: SQD), a medical systems automation company focused on evolving laboratory-based biomarker testing, today announced that it intends to raise gross proceeds of up to CDN $5 million through a non-brokered private placement of up to 2,000,000 units of the Company at a price of $2.50 per unit. Each Unit will consist of one (1) common share and one-half (1/2) of one common share purchase warrant. Each whole common share purchase warrant will entitle the holder to purchase one common share at a price of $5.00 for a period of two (2) years from date of issuance. A finder's fee may be paid by the Company in connection with the private placement.

The non-brokered private placement is subject to all necessary regulatory and stock exchange approvals. SQI intends to use the net proceeds to fund the Company's development and commercialization programs and for general working capital.

The securities being issued in the private placement will be subject to a four-month hold period in accordance with applicable Canadian securities laws. Closing of the non-brokered private placement will be on or about August 12, 2010.

About SQI Diagnostics

SQI Diagnostics is a medical systems company that develops proprietary technology in multiplexing, miniaturization and automation. SQI provides laboratories the ability to simultaneously analyze multiple biomarkers, deliver accurate and quantitative patient results in less time, significantly reduce labour, and increase profits...All in One Drop. For more information please visit www.sqidiagnostics.com.

Certain information in this press release is based on beliefs and assumptions of the Company's senior management and information currently available to it that may constitute forward-looking information within the meaning of securities laws. Such statements reflect the current views of the Company with respect to future events and are subject to certain risks and uncertainties. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements.

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.
    

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SOURCE SQI Diagnostics Inc.

For further information: 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


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