TORONTO, Aug. 29 /CNW/ - SQI Diagnostics Inc. (TSX-V: SQD), a medical
systems automation company focused on evolving laboratory-based biomarker
testing, today announced its financial results for the fiscal third quarter,
ended June 30, 2008.
"During the quarter, we solidified our financial position, and received
ISO 13485 certification for our quality management system thereby validating
our capabilities to develop and manufacture high-quality platform systems and
tests for the healthcare market," said Claude Ricks, CEO of SQI Diagnostics.
"We leveraged both of these developments to advance the commercialization
program for our fully-automated SQiDworks(TM) platform and QuantiSpot(TM) RA,
our lead test for rheumatoid arthritis, which we expect to launch in early
Highlights for the quarter
- SQI was awarded its ISO 13485:2003 certification for its quality
management system for the Design and Development, Production,
Distribution, Installation and Servicing of its In Vitro Diagnostics
systems (Microarray Platforms and Consumable Kits). This significant
milestone further reinforces SQI Diagnostics' efforts to develop and
manufacture high-quality tests and medical systems for the healthcare
- The Company raised CDN$3.66 million through the sale of
2,439,500 common shares at a price of CDN$1.50 per share. Proceeds
from the Financing will be used to fund research and development, for
working capital and general corporate purposes.
- SQI presented at the AACC 40th Annual Oak Ridge Conference -
Breakthrough Technologies for Clinical Diagnostics in San José, CA.
The presentation focused on the sensitivity and specificity of
anti-citrullinated peptide (CCP) detection, a key component of
SQI Diagnostics' multi-analyte QuantiSpot(TM) RA panel on
SQI Diagnostics' automated SQiDworks(TM) platform.
- The Company announced that the Royal Bank of Canada agreed to provide
it with financing of $730,000 in the form of a non-revolving credit
On May 4, 2007, the Company began trading on the TSX Venture under the
symbol SQD. In 2007, SQI Diagnostics Inc. changed its year end from
December 14 to September 30.
For the quarter ending June 30, 2008, the Company recorded a net loss of
$1,323,804 or $0.06 per share compared to a loss of $1,171,998 or $0.07 per
share for the quarter ending June 30, 2007. Losses for the current quarter
increased compared to the same quarter a year earlier primarily due to
increased labour and laboratory, and external testing expenses related to
research and development activity on the Company's SQiDworks platform and its
lead QuantiSpot autoimmune assays for the detection and quantification of
biomarkers for rheumatoid arthritis and antiphospholipid syndrome.
Net research and development expenses for the quarter ending
June 30, 2008 were $828,032 compared to $685,442 for the period ending
June 30, 2007. Research and development expenses increased during the quarter
ending June 30, 2008 compared to the same period last year due to an increase
in R&D salary and benefit expenses, lab costs attributed to the production of
QuantiSpot test kits for verification studies, and to fees paid to SQI's
validation partners to prepare for validation studies on the Company's
QuantiSpot RA assay and SQiDworks Platform.
Corporate expenses, which include administrative salaries and related
expenses; general and administrative expenses; advertising and promotion
expenses; travel expenses; interest expenses and professional and consulting
fees totaled $266,656 for the quarter ending June 30, 2008 compared to
$422,569 for quarter ending June 30, 2007. Corporate expenses were higher in
the quarter ending June 30, 2007 compared to the same period in the current
year primarily due to higher professional costs and other costs related to
completing the Company's going-public transaction.
At June 30, 2008 the Company had working capital of $4,773,127 compared
to $3,408,917, at September 30, 2007, and current assets of $5,099,933 as
compared to $3,674,792 at September 30, 2007. As at June 30, 2008, there were
22,217,478 common shares issued and outstanding.
About SQI Diagnostics
SQI Diagnostics is a medical systems automation company focused on
evolving laboratory-based biomarker testing. Using automation and proprietary
miniaturization technologies, SQI Diagnostics significantly improves the
economies of scale for laboratories performing multiple biomarker testing at
high volumes, allowing them to deliver patient results faster using less
labour and fewer resources. SQI Diagnostics' platform has a user-friendly
interface, high sample throughput and offers a more efficient alternative to
current testing options. SQI Diagnostics' initial products target the
$1.4 billion autoimmune disease market, with initial products for rheumatoid
arthritis and thrombosis scheduled for launch in 2008. SQI Diagnostics is
based in Toronto, Canada. For further information please visit
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
This release was prepared by management of the Company who takes full
responsibility for its contents. The TSX Venture Exchange has not
reviewed and does not accept responsibility for the adequacy or accuracy
of this news release.
For further information:
For further information: Chief Financial Officer, Andrew Morris, (416)
674-9500 ext. 229, firstname.lastname@example.org; Investor Relations, Adam
Peeler, (416) 815-0700 ext. 225, email@example.com