SQI Diagnostics Inc. announced that it has completed a non-brokered private placement (the "Offering") of secured debentures at a price of $1,000 per Debenture for aggregate gross proceeds of $4.05 million (collectively, the "Debentures"). The Debentures will bear interest at a rate of 8% per annum and will mature two years from the date of issuance (the "Maturity Date"). In connection with the Offering, the Company amended its existing security agreement (the "Security Agreement") dated January 30, 2015, as supplemented and amended from time to time, entered into among the Company and certain holders of existing 10% secured debentures (the "Existing Debentures") of the Company in order to secure the obligations of the Company under the Debentures on the same priority as the Existing Debentures.

At any time prior to the first anniversary of Offering, the Company may redeem the Debentures, in whole or in part, at a price equal to 105% of the aggregate amount of indebtedness under the Debentures that the Company elects to redeem and at any time following the first anniversary of the Offering, the Company may redeem the Debentures, in whole or in part, at a price equal to 110% of the aggregate amount of indebtedness under the Debentures that the Company elects to redeem. SQI intends to use the net proceeds of the Offering to fund the Company's product commercialization and manufacturing programs, sales and marketing and for general working capital purposes. The Debentures were purchased by three insiders of the Company, who are control persons of the Company.

The issuances of Debentures to insiders pursuant to the Offering are 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 relied on exemptions from the formal valuation and minority approval requirements in sections 5.5(b) and 5.7(f) of MI 61-101 in respect of such insider participation. Further details will be provided in the Company's material change report to be filed on SEDAR.

The Offering is subject to all necessary regulatory and approvals, including the final approval of the TSX Venture Exchange. The Debentures 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.