SQI Diagnostics Inc. announced that SQI and Pivot Financial ("Pivot") have agreed to extend the maturity date of SQI's $8.0 million credit facility (the "Credit Facility") with Pivot from April 30, 2023 to July 30, 2023 (the "Pivot Amendment"). As the Company previously announced, holders of its $2.09 million principal amount 10% secured debentures dated January 30, 2015, as amended (the "Debentures") have agreed to the temporary deferral of all interest payments under the Debentures (the "Debentures Interest Deferral"). The holders of the Debentures are controlled by certain insiders of SQI who are also control persons of SQI (the "Insider Lenders").

All deferred interest under the Debentures Interest Deferral will become due upon demand by the holders of the Debentures, which demand may not be made earlier than June 1, 2023. The Insider Lenders have further agreed that demand may not be made earlier than July 31, 2023. All other terms of the Credit Facility and Debentures remain unchanged.

The Company is in the process of identifying potential new sources of financing that could be used to repay the Company's outstanding indebtedness under the Credit Facility; however, there can be no assurances as to whether it will be successful in doing so nor can there be certainty with respect to the terms of any such new financing or financings. The Company will announce additional details relating to any new financing or financings in due course in the event that it is successful in negotiating and entering into definitive documentation relating to same. As previously announced, the Company entered into a credit agreement with Pivot, an arm's length third party to the Company, relating to the extension of a short-term senior secured Credit Facility dated February 11, 2022 to satisfy the cash consideration payable by SQI pursuant to the Company's acquisition of substantially all of the assets underlying Precision Biomonitoring Inc.'s human diagnostic COVID-19 PCR testing business and its TripleLock™ molecular diagnostic testing technology and for general working capital.

The Insider Lenders participated in funding 50% of the principal amount advanced under the Credit Facility pursuant to the terms of participation agreements entered into between Pivot and the Insider Lenders dated February 14, 2022, as amended.