TORONTO, Aug. 30 /CNW/ - SQI Diagnostics Inc. (TSX-V: SQD), a
medical systems automation company focused on evolving laboratory-based
biomarker testing, today announced its financial and operational results
for the third quarter ended June 30, 2010.
Announced that Gamma-Dynacare Medical Laboratories, one of Canada's
largest providers of laboratory services, has agreed to put into
operation SQI's SQiDworksTM platform, and to
purchase SQI's multiplexed QuantiSpotTM
Rheumatoid Arthritis consumables to meet its commercial needs; the
agreement with Gamma-Dynacare marks the first conversion of an
evaluation platform to a revenue generating platform for SQI;
Subsequent to the quarter end, IgXplex Celiac was filed seeking a
Health Canada license and IgXplex Celiac (Investigational Use Only)
kits were shipped to our customer in Canada for evaluation.
Made significant progress advancing our product pipeline including
IgXplex Celiac, IgXplex Vasculitis and IgXplex SLE (lupus).
Presented clinical and product development data at a European
autoimmune conference showing the specificity, sensitivity and utility
of SQI's proprietary assays utilized in the diagnostic
novel biomarkers associated with rheumatoid arthritis, celiac disease
and Crohn's disease;
Subsequent to quarter end, announced the closing of a non-brokered
private placement for gross proceeds of $5.7 million. The private
placement consists of 2,280,000 units of the Company at a price of
$2.50 per Unit. Each unit is comprised of one common share and
one-half 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 years from date
of closing, expiring on August 12, 2012.
"Our second quarter was highly productive from a clinical, commercial
and capital markets perspective," said Andrew Morris, CFO of SQI
Diagnostics. "We anticipate that the momentum created in the recent
reporting period will continue in the coming quarters as we accelerate
the development of our emerging pipeline of autoimmune multiplexed
panels in order to create more commercial content for our prospective
and current customers."
For the quarter ended June 30, 2010, the Company recorded a net loss of
$1,613,000 or $0.05 per share compared to a net loss of $1,354,000 or
$0.05 per share for the quarter ended June 30, 2009.
The increased loss for the quarter ending June 30, 2010 was primarily
related to greater activity and expenses in the discovery efforts for
and development of several IgXplex assays and increases in research and
development wages and wage-related expenses owing to an increase in
personnel supporting our R&D efforts. R&D expenditures for the three
month period ended June 30, 2010 were $1,111,000 versus $825,000 for the
three month period ended June 30, 2009. The increase year-over-year
related primarily to increased R&D salaries and related expenses,
laboratory consumable costs and laboratory operating expenses due to the
increased R&D activity.
Sales and marketing expenses also increased in the quarter compared to
the previous year owing to an increase in the number of sales and
marketing personnel and to an increase in sales calls and associated
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 $123,000 for the quarter ended June 30, 2010
compared to $84,000 for the quarter ended June 30, 2009.
At June 30, 2010, current assets were $6,959,000 compared to $6,879,000
at March 31, 2010. Working capital as at June 30, 2010 was $6,289,000
compared to $6,332,000 at March 31, 2010.
Management believes that cash on hand at June 30, 2010, plus the capital
generated from the non-brokered private placement, which closed August
12, 2010, will be sufficient to fund Company operations for at least 12
months. A successful commercial launch of additional products in North
America and the generation of revenue in the 2010 and 2011 fiscal years
will extend this period.
Detailed financial statements and the MD&A are available at www.sedar.com.
About SQI Diagnostics
SQI Diagnostics is a medical systems company that develops proprietary
technology through multiplexing, miniaturization and automation. SQI
provides laboratories the ability to simultaneously analyze multiple
biomarkers, deliver accurate 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.
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