SQI Diagnostics Inc. ("SQI" or the "Company") (TSX-V: SQD), a
life sciences company that develops and commercializes proprietary
technologies and products for advanced microarray diagnostics, announced
today it has raised gross proceeds of CDN $2.333 million through the
second tranche of a non-brokered private placement (the "Private
Placement") of 1,333,428 units ("Units") priced at $1.75 per Unit. The
aggregate gross proceeds raised by the Company in connection with both
the first and the second tranche is $4.905 million.
Each Unit consists of one common share and one common share purchase
warrant. Each common share purchase warrant will entitle the holder to
purchase one common share at a price of $2.50 for a period of two years
from the date of issuance. After giving effect to the issuance of the
shares and assuming the exercise of all warrants issued in connection
with both the first and second tranches of the Private Placement the
Company would have 41,886,309 shares outstanding.
In connection with the second tranche of the Private Placement, the
Company paid Kingsdale Capital Markets Inc. ("Kingsdale") a cash
finder's fee of $140,010 and issued 80,006 compensation warrants
entitling Kingsdale to acquire 80,006 Units at a price of $1.75 per Unit
and expiring 24 months after the closing of the Offering.
In addition, the Company now expects to complete the previously
announced private placement of up to 5,142,847 units at a price of $1.75
per Unit for gross proceed of up to $9 million in three tranches. The
third tranche is expected to close on or about May 24, 2012.
The Private Placement is subject to all necessary regulatory and stock
exchange approvals. The securities being issued pursuant to the Private
Placement will be subject to a four month hold period in accordance with
applicable Canadian securities law.
SQI intends to use the net proceeds to fund the Company's product
development and commercialization programs, sales and marketing and for
general working capital purposes.
"The closing of the second tranche of the Private Placement is important
to the Company as we believe that it puts the Company in a strong
position to focus on our sales funnel of Diagnostic Tools and Services
and continue to commercialize our IVD products which will strengthen our
IVD customer opportunities," said Andrew Morris, Chief Financial Officer