SQI Diagnostics (TSXV:SQD;OTCQB:SQIDF) has announced it will complete a non-brokered private placement of up to 31.25 million units of the company at $0.08 per unit for gross proceeds of up to $2.5 million.

As quoted in the press release:

Each Unit will consist of one common share and one common share purchase warrant. Each common share purchase warrant will entitle the holder to purchase one common share at a price of $0.11 for a period of five years from the date of issuance, subject to accelerated expiry in certain circumstances.

It is anticipated that three insiders who are control persons of the Company will subscribe for up to 25,000,000 Units for aggregate gross proceeds of $2,000,000 under the Private Placement. The issuances of Units to insiders pursuant to the Private Placement will also be considered related party transactions within the meaning of TSXV Policy 5.9 and Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101“). SQI intends to rely on exemptions from the formal valuation and minority approval requirements in sections 5.5(g) and 5.7(e) of MI 61-101 in respect of such insider participation on the basis of financial hardship. Further details will be provided in the Company’s material change report to be filed on SEDAR.

Click here to read the full press release.