TORONTO, March 28, 2023 /PRNewswire/ - SQI Diagnostics Inc. ("SQI" or the "Company") (TSXV: SQD) (OTCQB: SQIDF), a leader in the science of lung health, today announced that it is moving to strategically focus on what is now its core business: creating precision Point of Care (POC) products in respiratory health.
As a result of SQI's strategic shift to focus on POC, the Company intends to focus on three flagship products:
- The RALI-fast™ Severity Triage POC Test – the multiplexed, point of care version of the RALI-Dx™ IL-6 Severity Triage Test — helps clinicians identify which patients with SARS-CoV-2 will have a severe inflammatory response and has already been evaluated in a clinical study in the University Health Network (UHN) intensive care unit
- SQI's TORdx LUNG Test measures up to four inflammatory biomarkers in a series of perfusate samples drawn from an Ex Vivo Lung Perfusion (EVLP) system supporting a donor lung before transplantation to a recipient. The TORdx LUNG Test helps predict recipient outcome should the organ be transplanted. SQI will be engaging with the US FDA and initiate clinical studies across four sites in North America to support regulatory approval for the product.
- SQI's partnership with Owlstone Medical to develop non-invasive breath diagnostic products to monitor the health of lung transplant recipients. Initial clinical studies at UHN are under review and expected to be initiated in Q2 2023.
As a part of SQI's new strategy going forward, the Company has reduced its workforce from approximately 44 full-time employees to 20 full-time employees to focus on maintaining and developing the Company's key capabilities of clinical and regulatory expertise, managing outsourced product development and outsourced manufacturing. The Company expects to reduce its payroll and cash burn by approximately 50% on a monthly basis. In connection with this evolution of the Company's strategy, SQI intends to entertain offers from potential buyers for the Company's now, non-core business that is based on lab-based instruments. The Company's leadership will remain intact, including regulatory, clinical and finance roles.
"I would like to thank our Board for supporting this bold new direction for our company and to Pivot Financial who have agreed to accrue interest payments on our credit facility," said Andrew Morris, President and CEO of SQI Diagnostics. "Having received regulatory authorization in Canada for our RALI-Dx™ IL-6 Severity Triage Test and demonstrated the technical feasibility of our RALI-fast tests transitioning to point of care, we're ready to move more aggressively into that market, with a laser-focus on our core business."
About SQI Diagnostics
SQI Diagnostics is a leader in the science of lung health. The Company develops and manufactures respiratory health and precision medicine tests that run on SQI's fully automated systems. The Company's tests simplify and improve COVID19 antibody monitoring, Rapid Acute Lung Injury testing, donor organ transplant informatics, and immunological protein and antibody testing. SQI Diagnostics is 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
FORWARD-LOOKING INFORMATION
This press release contains certain words and statements, which may constitute "forward-looking statements" within the meaning of applicable securities laws relating to future events or future performance and reflect the current expectations and assumptions of the Company regarding its growth, results of operations, performance, business prospects and opportunities. These statements generally can be identified by use of forward-looking words such as "may", "would", "could", "will", "should", "expect", "plan", "estimate", "anticipate", "intends", "believe", "potential", or "continue" or the negative thereof or similar variations. The Company's actual results and performance discussed herein could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, the effect of the global pandemic and consequent economic disruption, the intended effects of the change in the Company's strategy and the factors detailed in the Company's ongoing filings with the securities regulatory authorities, available at www.sedar.com. Although the forward-looking statements contained herein are based on what we consider to be reasonable assumptions based on information currently available to us, 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 law.
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SOURCE SQI Diagnostics Inc.
