TORONTO, March 24, 2023 /CNW/ – SQI Diagnostics Inc. (the “Company” or “SQI“) (TSXV: SQD) (OTCQB: SQIDF), a leader in the science of lung health that develops and manufactures respiratory health and precision medicine tests, announces that certain insiders of the Company, who are also control persons of the Company and collectively own, or exercise control or direction over, an aggregate of 75% of the issued and outstanding common shares (“Shares“) in the capital of the Company (the “Majority Shareholders“), have informed the Company of their intention to sell, from time to time, up to an aggregate of 45 million Shares, or 15 million Shares per Majority Shareholder, subject to market conditions, at or around the prevailing market price of the Shares at the time of such sales, and to use the proceeds of such sales (net of commissions, taxes and other selling costs) to finance the exercise of common share purchase warrants (“Warrants“) held by such Majority Shareholders at exercise prices ranging from $0.12 to $0.21 (the “Warrant Exercise“) in order to fund the Company.
Each of the Majority Shareholders has filed a Form 45-102F1 – Notice of Intention to Distribute Securities under Section 2.8 of NI 45-102 Resale of Securities ( the “Sale Notices“) in connection with the contemplated sales of Shares to fund the Warrant Exercise. The Company has also been informed by each of the Majority Shareholders that such shareholders intend to execute the sales of Shares through a combination of private and over-the-market trades during the duration of the sales period contemplated in the Sale Notices and expected to file subsequent Sale Notices from time to time. The Majority Shareholders have informed the Company that they intend to continue to fund the Company through the exercise of Warrants from time to time with proceeds raised from the sale of Shares pursuant to future Sale Notices. There are no assurances as to the timing of the transactions contemplated in the Sale Notices nor whether any such transactions will occur.
The Company intends to use the net proceeds from the exercise of warrants by the Majority Shareholders to fund working capital and for general corporate purposes.
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