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 $754,000 from the closing of
the third and final tranche of a non-brokered private placement (the
"Private Placement") of 430,713 units ("Units") priced at $1.75 per
Unit. The aggregate gross proceeds raised by the Company in connection
with the first, second and third tranches of the Private Placement is
$5.659 million through the issuance of a total of 3,233,571 units.
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 the first, second and third tranches of the Private Placement, the
Company would have 42,747,735 shares outstanding.
In connection with the third tranche of the Private Placement, the
Company paid Kingsdale Capital Markets Inc. ("Kingsdale") a cash
finder's fee of $45,225 and issued 25,843 compensation warrants
entitling Kingsdale to acquire 25,843 Units at a price of $1.75 per Unit
and expiring 24 months after the closing of the Offering. The total cash
finders fee and number of compensation warrants issued to Kingsdale for
the first, second and third tranches is $339,525 and 194,015
compensation warrants, respectively.
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 completion of the Private Placement puts the Company in a much
stronger financial position to focus on our sales funnel of Diagnostic
Tools and Services customers and to continue to commercialize our IVD
products," said Andrew Morris, Chief Financial Officer of SQI.