NEW YORK (360Dx) — SQI Diagnostics said today that it is planning a non-brokered private placement of stock and warrants for gross proceeds of up to C$2.5 million ($1.9 million).
According to the Toronto-based firm, it will sell up to roughly 31.3 million units — with each unit consisting of one common share and one common share purchase warrant — at C$.08 per unit. Each of the warrants can be used to purchase one common share at C$.11 per share within five years from the date of purchase. SQI said that it is expected that three unnamed insiders who are in control of the company will subscribe for up to 25 million units.
The transaction is expected to close on or around March 1. Proceeds will be used to fund SQI's product commercialization and manufacturing efforts, for sales and marketing, and for general working capital purposes.
Earlier this year, SQI and partner Microdrop launched two at-home testing products for rheumatoid arthritis and celiac disease.