LexaGene Announces an Increase to Previously Announced Bought Deal Public Offering

/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./

BEVERLY, Mass., Aug. 19, 2020 /CNW/ - LexaGene Holdings Inc. (TSXV: LXG) (OTCQB: LXXGF) ("LexaGene" or the "Company"), a molecular diagnostics company that develops genetic analyzers for rapid pathogen detection, is pleased to announce that it has entered into an agreement with Canaccord Genuity Corp. and Industrial Alliance Securities Inc. (collectively, the "Underwriters") pursuant to which the Underwriters have agreed to increase the size of its previously announced bought deal financing. The Underwriters have agreed to purchase, on a bought deal basis, an aggregate of 13,600,000 units (the "Units") of the Company at a price of $0.85 per Unit (the "Offering Price") for aggregate gross proceeds to the Company of approximately C$11,560,000 (the "Offering").

Each Unit shall consist of one common share (each a "Common Share") and one-half of one common share purchase warrant of the Company (each whole common share purchase warrant, a "Warrant"). Each Warrant shall be exercisable to acquire one common share of the Company (a "Warrant Share") for a period of 36 months from closing of the Offering at an exercise price of C$1.10 per Warrant, subject to adjustment in certain events.

The Company has granted the Underwriters an option (the "Over-Allotment Option") to purchase up to an additional 2,040,000 Units at the Offering Price, which Over-Allotment Option will be exercisable at any time and from time-to-time, for a period of 30 days following the Closing Date (as defined below), which would result in additional gross proceeds of approximately C$1,734,000. The Over-Allotment Option is exercisable to acquire Units, Common Shares and/or Warrants (or any combination thereof) at the discretion of the Underwriters.

The Units will be offered by way of a short form prospectus to be filed in all provinces of Canada except Quebec. The Offering is expected to close on September 9, 2020 (the "Closing Date") and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the TSX Venture Exchange and the applicable securities regulatory authorities.

The Company will use best efforts to obtain the necessary approvals to list the Common Shares, and the Warrant Shares issuable upon exercise of the Warrants on the TSX Venture Exchange.

The Company intends to use the proceeds of the Offering for general corporate purposes.

About LexaGene Holdings Inc.
LexaGene is a molecular diagnostics company that develops genetic analyzers for pathogen detection and other molecular markers for on-site rapid testing in veterinary diagnostics, food safety and for use in open-access markets such as clinical research, agricultural testing and biodefense. End-users simply need to collect a sample, load it onto the instrument with a sample preparation cartridge, enter sample ID and press 'go'. The MiQLab analyzer delivers excellent sensitivity, specificity, and breadth of detection and can return results in approximately one hour. The unique open-access feature is designed for custom testing so that end-users can load their own real-time PCR assays onto the instrument to target any genetic target of interest.

Forward-Looking Information
This news release contains forward-looking information, which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Important factors -- including the availability of funds, the results of financing efforts, the success of technology development efforts, the cost to procure critical parts, performance of the instrument, market acceptance of the technology, regulatory acceptance, and licensing issues -- that could cause actual results to differ materially from the Company's expectations as disclosed in the Company's documents filed from time to time on SEDAR (see www.sedar.com). Forward–looking statements are necessarily based upon a number of estimates and assumptions that, ‎while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors ‎which may cause the actual results and future events to differ materially from those expressed or implied ‎by such forward–looking statements. These forward-looking statements include, but are not limited to, ‎statements relating to the timing and completion of the Offering, the satisfaction and timing of the ‎receipt of required stock exchange approvals and other conditions to closing of the Offering and the ‎intended use of the net proceeds of the Offering.‎ Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release. 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.

SOURCE LexaGene Holdings Inc.

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