SQI Diagnostics Inc. Announces Private Placement Of Up To CAD9 Million

SQI Diagnostics Inc. announced that it intends to complete a non-brokered private placement (the Private Placement) of up to 5,142,857 units (Units) of the Company at a price of $1.75 per Unit for gross proceeds of up to $9 million, subject to regulatory and stock exchange approval. Each Unit will consist 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. If the full Private Placement is sold and after giving effect to the issuance of shares and exercise of warrants the Company would have up to 46,566,307 shares outstanding. The Company expects to close the Private Placement in two tranches, the first on or about May 11th and the second on or about May 18, 2012. In connection with the Private Placement, the Company will pay a finder's fee in cash equal to 7% of the gross proceeds and will issue compensation warrants to acquire Units equal to 6% of the Units issued in connection with the Private Placement. Each compensation warrant entitles the holder, for a period of 24 months after the closing date, to acquire Units at an exercise price of $1.75 per Unit. 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.