BROSSARD, Quebec, July 05, 2018 (GLOBE NEWSWIRE) -- DIAGNOS Inc. (“DIAGNOS” or the “Corporation”) (TSX Venture:ADK) (OTCQB:DGNOF), a leader in early detection of critical health issues through the use of its FLAIRE platform based on Artificial Intelligence (AI), announces the closing of a second and final tranche of 11 additional units (each a “Unit”), for gross cash receipts of $550,000, as part of a private placement (“Private Placement”) announced on May 28, 2018 and June 14, 2018. Aggregate cash receipts from the Private Placement amount to $800,000. The total number of Units amounts to 16. Each Unit consists of:
| (i) | One Secured, Convertible and Redeemable Debenture (“Debenture”), 3-year term ending July 4, 2021, 10% annual interest, principal of $50,000 per Debenture, and | |
| (ii) | 200,000 stock warrants (each a “Warrant”) entitling the holder to purchase one common share (“Share”) per Warrant at a price of $0.15 per Share, for a period of 18 months ending January 4, 2020. |
At the sole option of the holder of the Debenture, the principal amount of the Debentures may be converted at any time during the 3-year term which will expire July 4, 2021, in whole or in part, into Shares of the Corporation at a price of $0.10 per Share. Any accrued interest on the Debenture principal, at time of conversion by the holder, is immediately payable in cash.
If, at any time after July 4, 2019 and until July 4, 2021, the volume weighted average price of the Shares on the TSX Venture Exchange is equal to or higher than $0.18 for 20 consecutive trading days, the Debentures shall be redeemable, in whole or in part, at the sole option of the Corporation, into Shares of the Corporation at a price of $0.10 per Share. Any accrued interest on the principal, at time of redemption, will be immediately payable in cash.
The proceeds will be used to continue developing new geographical markets and to fund operating and product development expenses.
The Corporation retained the services of Echelon Wealth Partners (“Echelon”), Leede Jones Gable (“LJG”) and Arrowhead Capital Advisors, a division of Trump Securities (“Trump”), to act as finders in connection with the Private Placement. As per the terms of the engagement agreements, Echelon will be paid a commission of $17,500, LJG will be paid a commission of $14,000 and Trump will be paid a commission of $3,000.
The Debentures are sold in Canada on a prospectus-exempt basis and the common shares underlying the Debentures and stock warrants are subject to a statutory four-month hold period which will end November 4, 2018.
The Private Placement is subject to receipt of all required regulatory approvals, including the approval of the TSX Venture Exchange, as well as the execution of formal documentation.
All monies quoted in this press release shall be stated and paid in lawful money of Canada.
About DIAGNOS
DIAGNOS is a publicly-traded Canadian corporation with a mission of early detection of critical health issues through the use of its Artificial Intelligence (“AI”) tool CARA (Computer Assisted Retina Analysis). CARA is a tele-ophthalmology platform that integrates with existing equipment (hardware and software) and processes at the point of care (“POC”). CARA’s Artificial Intelligence image enhancement algorithms make standard retinal images sharper, clearer and easier to read. CARA is accessible securely over the internet, and is compatible with all recognized image formats and brands of fundus cameras, and is EMR compatible. CARA is a cost-effective tool for screening large numbers of patients in real-time and has been cleared for commercialization by several regulatory authorities such as Health Canada, the U.S. Food and Drug Administration and the European Union.
Additional information about DIAGNOS is available at www.diagnos.com and www.sedar.com.
For further information, please contact:
| André Larente, President | Josh Falle | ||
| DIAGNOS Inc. | Momentum PR | ||
| Tel: 450-678-8882 ext. 224 | Tel: 514-416-4656 | ||
| alarente@diagnos.ca | josh@momentumpr.com |
This news release contains forward-looking information. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in these statements. DIAGNOS disclaims any intention or obligation to publically update or revise any forward-looking information, whether as a result of new information, future events or otherwise. The forward-looking information contained in this news release is expressly qualified by this cautionary statement.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.