TORONTO, Aug. 20 /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 three-month period
ended June 30, 2007.
- Initiated trading on the TSX Venture Exchange under the symbol SQD
- Completed a private placement for gross proceeds of approximately
"During the quarter we achieved our key corporate milestones: completing
a qualifying transaction, listing our shares on the TSX Venture Exchange and
securing resources to further advance our core technology and products," said
Claude Ricks, CEO of SQI Diagnostics. "We remain on track to initiate a
validation trial for our automated multiplexed biomarker testing technology in
2007. Data from these trials will establish the ability of our platform to
significantly reduce the complexity, cost and time of laboratory diagnostics."
On April 26, 2007, the Company completed its Qualifying Transaction and
began trading on the TSX Venture under the symbol SQD on May 4, 2007.
For the three-month period ended June 30, 2007 the Company incurred a net
loss from operations of $1,171,998 or $0.07 per share compared with a net loss
of $650,059 or $0.04 per share for the three-month period ended June 30, 2006.
For the period from December 15, 2006 to June 30, 2007 the Company incurred a
net loss from operations of $2,010,668 or $0.13 per share compared with a net
loss of $934,755 or $0.06 per share for the corresponding period last year.
The increased losses during the 2007 periods were primarily related to higher
development, validation and commercialization expenses with regard to the
Company's lead assay programs for the platform and tests related to the
Rheumatoid Arthritis and Thrombosis diagnostic panels.
Revenue for the three-month period ended June 30, 2007 was $31,053
compared with $44,512 for the same period in 2006. Revenue for the period from
December 15, 2006 to June 30, 2007 was $126,981, compared with $67,376 for the
corresponding period last year. The difference in the revenue between the
periods is related to differences in interest income and to a single project
whose deliverables had been completed in the first half of 2006.
Research and development expenses for the three-month period ended
June 30, 2007 were $685,442 compared with $202,886 for the three-month period
ended June 30, 2006. Research and development expenses for the period from
December 15, 2006 to June 30, 2007 were $1,167,014 compared with $343,949 for
the same period last year. The difference is primarily related to increased
staffing and activities in the development of the two lead assays.
General and administrative expenses, that include corporate salaries and
related expenses, for the three-month period ended June 30, 2007 totaled
$414,359 compared with $372,883 for the corresponding period last year. These
expenses for the period from December 15, 2006 to June 30, 2007 were $717,123
compared with $478,670 for the same period last year. This difference is
primarily due to increased professional consulting fees and facilities rent
plus its related costs offset by lower salary expenses owing to the
consolidation of the President & COO and CEO roles into one executive role.
At June 30, 2007 the Company had working capital of $4,384,143 compared
with $858,885 at December 31, 2006. The increase in cash resulted from a
private placement of common shares and warrants for a total of gross proceeds
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 labor
and fewer resources. SQI Diagnostics' initial products target the $1.4 billion
autoimmune disease market, with initial products for Rheumatoid Arthritis and
Thrombosis scheduled for launch in 2007. SQI Diagnostics is based in Toronto,
Canada. For further 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
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, email@example.com; Investor Relations, James
Smith, (416) 815-0700 ext. 229, firstname.lastname@example.org