LexaGene Holdings Inc. (TSXV: LXG) (OTCQB: LXXGF), a molecular diagnostics company that develops genetic analyzers for rapid pathogen detection, is pleased to announce that it has entered into an agreement with Canaccord Genuity Corp. and Industrial Alliance Securities Inc. pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, an aggregate of 8,824,000 units (the "Units") of the Company at a price of C$0.85 per Unit for aggregate gross proceeds to the Company of approximately C$7,500,000.
Each Unit shall consist of one common share (each a "Common Share") and one-half of one common share purchase warrant of the Company (each whole common share purchase warrant, a "Warrant"). Each Warrant shall be exercisable to acquire one common share of the Company (a "Warrant Share") for a period of 36 months from closing of the Offering at an exercise price of C$1.10 per Warrant, subject to adjustment in certain events.
The Company has granted the Underwriters an option (the "Over-Allotment Option") to purchase up to an additional 1,323,600 Units at the Offering Price, which Over-Allotment Option will be exercisable at any time and from time-to-time, for a period of 30 days following the Closing Date (as defined below), which would result in additional gross proceeds of approximately C$1,125,000. The Over-Allotment Option is exercisable to acquire Units, Common Shares and/or Warrants (or any combination thereof) at the discretion of the Underwriters.
The Units will be offered by way of a short form prospectus to be filed in all provinces of Canada except Quebec. The Offering is expected to close on September 9, 2020 (the "Closing Date") and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the TSX Venture Exchange and the applicable securities regulatory authorities.
The Company will use best efforts to obtain the necessary approvals to list the Common Shares and the Warrant Shares issuable upon exercise of the Warrants on the TSX Venture Exchange.
The Company intends to use the proceeds of the Offering to scale up production, build inventory and for general corporate purposes.
The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold within the United States, or to or for the account or benefit of any U.S. persons or any persons in the United States, absent U.S. registration or an applicable exemption from the U.S. registration requirements. This news release does not constitute an offer for sale of securities for sale, nor a solicitation for offers to buy any securities. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the company and management, as well as financial statements.
About LexaGene Holdings Inc.
LexaGene is a molecular diagnostics company that develops genetic analyzers for pathogen detection and other molecular markers for on-site rapid testing in veterinary diagnostics, food safety and for use in open-access markets such as clinical research, agricultural testing and biodefense. End-users simply need to collect a sample, load it onto the instrument with a sample preparation cartridge, enter sample ID and press 'go'. The MiQLab analyzer delivers excellent sensitivity, specificity, and breadth of detection and can return results in approximately one hour. The unique open-access feature is designed for custom testing so that end-users can load their own real-time PCR assays onto the instrument to target any genetic target of interest.
