SQI Diagnostics announces $3.5M insider led financing

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By Ted Liu

SQI Diagnostics Inc. (TSX-V: SQD; OTCQX: SQIDF), an advanced microarray diagnostics company, intends to close a non-brokered private placement of up to 21,875,000 units at $0.16 per unit for gross proceeds of up to $3.5 million. The private placement is expected to close on or about March 10, 2017.

Insiders of the company will subscribe for up to 18,750,000 units for gross proceeds of $3,000,000 under the private placement.

Cumberland Private Wealth Management Inc., controlled by Gerald R. Connor, Clive J. Beddoe and Wilmot L. Matthews are three largest shareholders, controlling 17.08%, 16.81% and 16.79% of outstanding common shares respectively. Connor, Beddoe and Matthews are directors of SQI Diagnostics.

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 $0.21 for a period of five years from the date of issuance, subject to accelerated expiry in certain circumstances.

SQI intends to use the net proceeds to fund its product commercialization and manufacturing programs, sales and marketing and for general working capital purposes.

photo credit: SQI Diagnostics