SQI Diagnostics Inc. announces private placement of $1M

TORONTO — SQI Diagnostics Inc., a life sciences and diagnostics company that develops and commercializes proprietary technologies and products for advanced microarray diagnostics, announced that it intends to complete a non-brokered private placement of up to 11,111,112 units of the Company at a price of $0.09 per Unit for gross proceeds of up to $1,000,000.08, subject to regulatory and stock exchange approval. Each Unit will consist of one common share and one Common Share purchase warrant. Each Warrant will entitle the holder to purchase one Common Share at a price of $0.12 for a period of sixty (60) months from the date of issuance. The Private Placement may be completed in one or more tranches.

It is anticipated that two insiders of the Company, who are control persons of the Company, will collectively subscribe for all 11,111,112 Units issuable under the Private Placement. The issuances of Units to insiders pursuant to the Private Placement will also be considered related party transactions within the meaning of TSX-V Policy 5.9 and Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions. SQI intends to rely on exemptions from the formal valuation and minority approval requirements in sections 5.5(b) and 5.7(a) of MI 61-101 in respect of such insider participation.

The Private Placement is subject to all necessary regulatory and stock exchange approvals and may close in one or more tranches, with the first tranche expected to close on or about December 1, 2022. The securities being issued pursuant to the Private Placement will be subject to a hold period expiring four months and one day from the date of issuance in accordance with applicable Canadian securities law.

SQI intends to use the net proceeds of the Private Placement to fund the Company’s product commercialization and manufacturing programs, sales and marketing and for general working capital purposes.