TORONTO, March 20, 2023 /CNW/ – SQI Diagnostics Inc. (“SQI” or the “Company“) (TSXV: SQD) (OTCQB: SQIDF), a leader in the science of lung health that develops and manufactures respiratory health and precision medicine tests, announces that the Company has received conditional acceptance from the TSX Venture Exchange (the “TSXV“) for its previously announced issuance of 10,000,000 common share purchase warrants (the “Warrants“) to Pivot Financial (“Pivot“) in connection with the advance of an additional $500,000 by Pivot to the Company under the terms of an amending agreement (the “Amendment“) to an existing secured credit facility (the “Credit Facility“) with Pivot dated February 11, 2022, as amended from time to time.
Each Warrant is exercisable into one common share (each, a “Share“) in the capital of the Company up until March 20, 2024 at an exercise price of $0.05 per Share. The Warrants and any Shares issued upon exercise of the Warrants will be subject to a hold period expiring four months and one day from the date of issuance in accordance with applicable Canadian securities law.
The Company also clarifies that in connection with the Amendment, the Company has amended the terms of 16,705,767 existing stock options (the “Executive Options“) held by certain executives of the Company by reducing the current exercise price of the Executive Options from their current exercise prices to $0.05 per share and amending the term of the Executive Options to March 9, 2028 (the “Option Amendments“). Prior to the implementation of the Option Amendments, the Executive Options had exercise prices ranging from $0.105 to $0.275 and expiration dates ranging from May 21, 2024 to August 26, 2030. The Option Amendments are subject to the final approval of the TSXV and the approval of disinterested shareholders of the Company pursuant to TSXV Policy 4.4, which approval will be sought by the Company at its next annual meeting of shareholders.
Repayment of Credit Facility
The Company is in the process of identifying potential new sources of financing that could be used to repay the Company’s outstanding indebtedness under the Credit Facility; however, there can be no assurances as to whether it will be successful in doing so nor can there be certainty with respect to the terms of any such new financing or financings. The Company will announce additional details relating to any new financing or financings in due course in the event that it is successful in negotiating and entering into definitive documentation relating to same.
About SQI Diagnostics
SQI Diagnostics are leaders in the science of lung health. We develop and manufacture respiratory health and precision medicine tests that run on SQI’s fully automated systems. Our tests simplify and improve COVID-19 mobile PCR, Point of Care antigen testing and antibody monitoring, Rapid Acute Lung Injury testing, donor organ transplant informatics, and immunological protein and antibody testing. We’re 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.
Chief Financial Officer