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TORONTO, June 17,
2022 /CNW/ - SQI Diagnostics Inc. ("SQI" or the
"Company") (TSXV: SQD) (OTCQB: SQIDF), a life sciences and
diagnostics company that develops and commercializes proprietary
technologies and products for advanced microarray diagnostics,
today announces that it has completed a non-brokered private
placement (the "Offering") of secured debentures at a price
of $1,000 per Debenture for aggregate
gross proceeds of $4.05 million
(collectively, the "Debentures").
The Debentures will bear interest at a rate of 8% per annum and
will mature two years from the date of issuance (the "Maturity
Date"). In connection with the Offering, the Company amended
its existing security agreement (the "Security Agreement")
dated January 30, 2015, as
supplemented and amended from time to time, entered into among the
Company and certain holders of existing 10% secured debentures (the
"Existing Debentures") of the Company in order to secure the
obligations of the Company under the Debentures on the same
priority as the Existing Debentures. At any time prior to the first
anniversary of Offering, the Company may redeem the Debentures, in
whole or in part, at a price equal to 105% of the aggregate amount
of indebtedness under the Debentures that the Company elects to
redeem and at any time following the first anniversary of the
Offering, the Company may redeem the Debentures, in whole or in
part, at a price equal to 110% of the aggregate amount of
indebtedness under the Debentures that the Company elects to
redeem.
SQI intends to use the net proceeds of the Offering to fund the
Company's product commercialization and manufacturing programs,
sales and marketing and for general working capital purposes.
The Debentures were purchased by three insiders of the Company,
who are control persons of the Company. The issuances of Debentures
to insiders pursuant to the Offering are considered related party
transactions within the meaning of TSXV Policy 5.9 and Multilateral
Instrument 61-101 Protection of Minority Security Holders in
Special Transactions ("MI 61-101"). SQI relied on
exemptions from the formal valuation and minority approval
requirements in sections 5.5(b) and 5.7(f) of MI 61-101 in respect
of such insider participation. Further details will be provided in
the Company's material change report to be filed on SEDAR. The
Offering is subject to all necessary regulatory and approvals,
including the final approval of the TSX Venture Exchange. The
Debentures 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.
The securities described herein 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 accordingly may not be offered or sold within
the United States or to "U.S.
persons", as such term is defined in Regulation S promulgated under
the U.S. Securities Act ("U.S. Persons"), except in
compliance with the registration requirements of the U.S.
Securities Act and applicable state securities requirements or
pursuant to exemptions therefrom. This news release does not
constitute an offer to sell or a solicitation of an offer to buy
any of the Company's securities to, or for the account of benefit
of, persons in the United States
or U.S. Persons.
About SQI Diagnostics
SQI Diagnostics are leaders in the science of lung health. We
develop and manufacture respiratory health and precision medicine
tests that run on SQI's fully automated systems. Our tests simplify
and improve COVID-19 mobile PCR, Point of Care antigen testing and
antibody monitoring, Rapid Acute Lung Injury testing, donor organ
transplant informatics, and immunological protein and antibody
testing. We're driven to create and market life-saving testing
technologies that help more people in more places live longer,
healthier lives. For more information, please visit
www.sqidiagnostics.com.
Contact:
Chief Financial Officer
Morlan Reddock
437-235-6563
mreddock@sqidiagnostics.com
CAUTIONARY NOTES
This news release contains certain forward-looking
statements, including, without limitation, statements containing
the words "will", "may", "expects", "intends", "anticipates" 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. The forward-looking statements
in this news release include without limitation, statements with
respect to the Offering and the use of proceeds of the Offering.
These forward-looking statements involve risks and uncertainties
including, but not limited to risks related to the failure to
obtain necessary regulatory and stock exchange approvals for the
Offering, general economic and market factors, competition,
the effect of the global pandemic and consequent economic
disruption, and the factors detailed in the Company's ongoing
filings with the securities regulatory authorities, available
at www.sedar.com. Although forward-looking statements
contained herein are based on what management considers to be
reasonable assumptions based on currently available information,
there can be no assurance that actual events, performance or
results will be consistent with these forward-looking statements,
and our assumptions may prove to be incorrect. 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 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 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.
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SOURCE SQI Diagnostics Inc.