/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN
CANADA ONLY AND IS NOT INTENDED
FOR DISTRIBUTION TO UNITED STATES
NEWSWIRE SERVICES OR DISSEMINATION IN THE
UNITED STATES./
BEVERLY, Mass., Aug. 19, 2020 /CNW/ - LexaGene Holdings
Inc. (TSXV: LXG) (OTCQB: LXXGF) ("LexaGene" or the
"Company"), 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. (collectively, the
"Underwriters") pursuant to which the Underwriters have agreed to
increase the size of its previously announced bought deal
financing. The Underwriters have agreed to purchase, on a bought
deal basis, an aggregate of 13,600,000 units (the "Units") of the
Company at a price of $0.85 per Unit
(the "Offering Price") for aggregate gross proceeds to the Company
of approximately C$11,560,000 (the
"Offering").
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 2,040,000
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$1,734,000. 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 for
general corporate purposes.
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.
Forward-Looking Information
This news release contains
forward-looking information, which involves known and unknown
risks, uncertainties and other factors that may cause actual events
to differ materially from current expectation. Important factors --
including the availability of funds, the results of financing
efforts, the success of technology development efforts, the cost to
procure critical parts, performance of the instrument, market
acceptance of the technology, regulatory acceptance, and licensing
issues -- that could cause actual results to differ materially from
the Company's expectations as disclosed in the Company's documents
filed from time to time on SEDAR (see www.sedar.com).
Forward–looking statements are necessarily based upon a number of
estimates and assumptions that, while considered reasonable, are
subject to known and unknown risks, uncertainties, and other
factors which may cause the actual results and future events to
differ materially from those expressed or implied by such
forward–looking statements. These forward-looking statements
include, but are not limited to, statements relating to the timing
and completion of the Offering, the satisfaction and timing of the
receipt of required stock exchange approvals and other conditions
to closing of the Offering and the intended use of the net
proceeds of the Offering. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of the date of this press release. The company disclaims any
intention or obligation, except to the extent required by law, to
update or revise any forward-looking information, whether as a
result of new information, future events or otherwise.
The TSX Venture Exchange Inc. has in no way passed upon the
merits of the proposed transaction and has neither approved nor
disapproved the contents of this press release. Neither 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.
SOURCE LexaGene Holdings Inc.