NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION
IN THE UNITED STATES
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 raised gross proceeds of CDN $2.572 million through the first
tranche of a non-brokered private placement (the "Private Placement") of
1,469,430 units ("Units") priced at $1.75 per unit.
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 exercise of warrants of the first tranche of the Private
Placement the Company will have 39,219,453 shares outstanding.
In connection with the first tranche of the Private Placement, the
Company paid Kingsdale Capital Markets Inc. ("Kingsdale") a cash
finder's fee of $154,290 and issued 88,166 compensation warrants
entitling Kingsdale to acquire 88,166 Units at a price of $1.75 per Unit
and expiring 24 months after the closing of the Private Placement.
As previously announced, the Company intends to complete the second
tranche of the non-brokered of the Private Placement issuing up to an
aggregate total of 5,142,857 units ("Units"), including the first
tranche of the Private Placement, at a price of $1.75 per Unit for total
aggregate gross proceeds of up to $9 million, on or about May 18, 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.
"SQI's enhanced cash position improves its ability to support the
Company's customers in the long term and the continued build-out of its
portfolio of quantitative IVD autoimmune test panels," said Andrew
Morris, Chief Financial Officer of SQI Diagnostics. "We believe that
this financing will also enable the Company to focus on its near term
Diagnostic Tools and Services ("DxTS") customers and the generation of
new product and service revenue opportunities from what we believe to be
a strong DxTS sales funnel."
About SQI Diagnostics
SQI Diagnostics is a life sciences company that develops and
commercializes proprietary technologies and products for advanced
microarray diagnostics. The Company's proprietary microarray tests and
fully-automated systems are designed to simplify protein and antibody
testing workflow, increase throughput, reduce costs and provide
excellent data quality. For more information, please visit www.sqidiagnostics.com.
The contents of the Company's website are specifically not incorporated
by reference in this press release.
This press release contains certain forward-looking statements,
including, without limitation, statements containing the words "may",
"plan", "will", "estimate", "continue", "anticipate", "intend",
"expect", "believe", "in the process", "is subject to" and other similar
expressions which constitute "forward-looking information" within the
meaning of applicable securities laws. Forward-looking statements
reflect the Company's current expectation and assumptions, and are
subject to a number of risks and uncertainties that could cause actual
results to differ materially from those anticipated. These
forward-looking statements involve risks and uncertainties including,
but not limited to the closing of all or any part of the second tranche
of the Private Placement, regulatory and stock exchange approval
of the Private Placement, our intended use of the proceeds from the
Private Placement, our need for additional capital to sustain our
business, general economic and market segment conditions, competitor
activity, technology changes and regulatory approvals. Such statements
reflect the current views of the Company with respect to future events
and are subject to certain risks and uncertainties and other risks
detailed from time-to-time in the Company's ongoing filings with the
securities regulatory authorities, which filings can be found at www.sedar.com.
Actual results, events, and performance may differ materially. Readers
are cautioned not to place undue reliance on these forward-looking
statements. The Company undertakes no obligation to publicly update or
revise any forward-looking statements either as a result of new
information, future events or otherwise, except as required by
applicable securities laws.
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.