TORONTO, Aug. 12 /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 closed its previously announced non-brokered private placement (the "Private Placement") for gross proceeds of $5.7 million.
The Private Placement consist of 2,280,000 units of the Company (the "Units") at a price of $2.50 per Unit. Each Unit is comprised 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 additional common share at a price of $5.00 for a period of two (2) years from date of closing, expiring on August 12, 2012.
In connection with the Private Placement, the Company paid Kingsdale Capital Markets Inc. ("Kingsdale") a finders fee equal to 4.5% of the gross proceeds and issued a compensation warrant which entitles Kingsdale to acquire 57,000 Units at a price of $2.50 per Unit.
SQI intends to use the net proceeds from the Private Placement to fund the Company's development and commercialization programs and for general working capital.
"SQI's enhanced cash position improves its ability to support the Company's customers in the long term, and supports the continued build-out of its portfolio of autoimmune test panels for conditions such as celiac, lupus and vasculitis that are being developed to run on its SQiDworks platform," said Andrew Morris, Chief Financial Officer of SQI Diagnostics. "As more test panels become commercially available, the potential return-on-investment for labs that are considering purchasing the Company's technology increases, which the company believes could accelerate SQI's revenue ramp."
The securities issued in the Private Placement are subject to a four-month hold period expiring December 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.
SOURCE SQI Diagnostics Inc.
For further information: For further information: Chief Financial Officer, Andrew Morris, 416.674.9500 ext. 229, firstname.lastname@example.org; Media and Investor Relations, Adam Peeler, 416.815.0700 ext. 225, email@example.com