Still not populated to SQI website..totally under the radar SQI Diagnostics receives $3.9M from warrant exercise
2021-06-15 16:15 ET - News Release
Mr. Clive Beddoe reports
SQI DIAGNOSTICS INC. ANNOUNCES $3.9 MILLION FUNDING VIA WARRANT EXERCISE BY INSIDERS
Certain insiders of SQI Diagnostics Inc. who are control persons have exercised 19,687,504 common share purchase warrants of the company for aggregate gross proceeds of approximately $3.9-million. Of the insider warrants exercised, 19,687,504 insider warrants were exercised at a price of 20 cents per share.
SQI intends to use the proceeds of the funding to invest in manufacturing and commercialization scaleup activities, in anticipation of approvals of its filed and pending U.S. Food and Drug Administration regulatory submissions. "I and the insiders continue to have confidence in our investment in SQI and its recent product development accomplishments," said Clive Beddoe, SQI's interim chief executive officer. "We are approaching a significant inflection point for the company and this injection of capital will strengthen our balance sheet and allow the company to continue its momentum towards commercialization."
In connection with the completion of the funding, the directors of the company, excluding the control persons, approved a waiver by the company of the company's right to accelerate the expiry date of all 59,437,504 of its currently outstanding common share purchase warrants with expiry date acceleration provisions, including: (i) 12,344,233 accelerable warrants with expiry dates that could be accelerated in the event that the shares traded at a price of 43 cents for at least 20 consecutive trading days, of which 11,538,462 such accelerable warrants are held by control persons; and (ii) 47,093,271 accelerable warrants with expiry dates that could be accelerated in the event that the shares traded at a price of 50 cents for at least 20 consecutive trading days of which 39,675,005 such accelerable warrants are held by control persons. As a result of the acceleration waiver, all outstanding 59,437,504 accelerable warrants will remain exercisable for the duration of their respective terms regardless of the trading price of the shares.
The insider warrant arrangement may be considered a related party transaction within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions. The company is relying on exemptions from the formal valuation and minority approval requirements in sections 5.5(g) and 5.7(1)(e) of MI 61-101 in respect of the insider warrant arrangement on the basis of financial hardship.
About SQI Diagnostics Inc.
SQI Diagnostics is a precision medicine company that discovers, develops and commercializes innovative rapid diagnostic testing for health care providers, patients and consumers worldwide. The company's proprietary advanced diagnostics target organ transplant, autoimmune disease and serological testing, which include the developmental direct-to-consumer COVID-19 Home antibody test, the RALI-Dx COVID-19 severity triage test and the COVID-19 RALI-fast Severity triage point-of-care (POC) test. SQI's rapid diagnostic tests are intended to be sold to health care professionals so that patients can get accurate results and fast effective treatment, and direct-to-consumers so that individuals can be empowered to improve their health outcomes from the comfort of home.
Under serological testing, SQI is fast-tracking the development of three COVID-19 diagnostic tests: a direct-to-consumer antibody test and two COVID-19 severity triage tests. The COVID-19 home antibody test identifies the presence of IgM, IgA and IgG antibodies of SARS-CoV-2 in individuals suspected to have been infected with COVID-19 and asymptomatic individuals wanting to know if they have been exposed. The test is more than 99 per cent accurate with results delivered in 24 to 48 hours. Should the COVID-19 home antibody test receive regulatory approval, the test is expected to be available direct-to-consumer which would allow individuals to avoid travelling to a clinic or hospital to be tested for the presence of the SARS-CoV-2 antibody.
The RALI-Dx COVID-19 severity triage test and the RALI-fast COVID-19 severity triage POC test each help clinicians identify which patients with SARS-CoV-2 will have a severe inflammatory response and require hospital admission or not. Both tests measure the critical biomarker IL-6 which plays a key role in the cytokine storm phase of COVID-19. The RALI-Dx delivers results from the lab in under an hour while the RALI-fast delivers results at the patient's point-of-care in about 15 minutes.
Under organ transplant, SQI is pioneering the development of an advanced diagnostic test that increases the chance of successful lung transplant by assessing the health of the donor organ prior to transplant surgery. The company's developmental TORdx lung test can detect inflammation at the molecular level to assess the health of the donor lung, enabling surgeons to transplant healthy lungs which otherwise would have been rejected; there is currently no other such test. SQI has partnered clinical development with UHN Hospitals, one of the largest health and medical research organizations in North America. Upon regulatory approval of the TORdx lung test, clinical development is planned for diagnostic tests designed to increase the chance of successful kidney and liver transplant. Under autoimmune disease testing, SQI has a direct-to-consumer celiac disease and a rheumatoid arthritis (RA) test that enable people to screen for the diseases from the comfort of their home. The direct-to-consumer RA test can help identify and confirm RA symptoms for timely care and treatment. The direct-to-consumer celiac test confirms disease and validates the effectiveness of dietary and lifestyle changes to confirm the autoimmune response is improving.
The company is not making any express or implied claims that its products can eliminate, cure or contain COVID-19 (or SARS-2 coronavirus) at this time. For its research and development, the company is collaborating with UHN Hospitals, one of the largest health and medical research organization in North America.
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