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SQI Diagnostics Looks to Raise $3.7M in Private Placement

NEW YORK (GenomeWeb News) – SQI Diagnostics today announced a non-brokered private placement intended to raise C$3.76 million (US$3.72 million) in gross proceeds.

The Toronto-based microarray diagnostic firm said it plans to offer up to a little more than 5 million units at C$.75 per unit as part of the placement. Each unit will consist of one common share and one common share purchase warrant. Each warrant will entitle the holder to buy one common share at C$1.10 for up to two years after the date of issuance.

The private placement is anticipated to close on or about May 1, SQI said.

SQI plans to use net proceeds from the placement for product development and commercialization, as well as sales and marketing, and general working capital.

The cash-strapped firm is in the midst of a turnaround effort. In November it created a special committee to review strategic alternatives, including a possible merger or sale. In its recent first quarter results it reported C$3,000 in revenues, which followed a 2012 fourth quarter in which it reported no revenues.

As of Dec. 31, 2012, the company had C$2.0 million in cash and cash equivalents.