SQI Diagnostics Inc Congratulates its Partner UHN for Winning $24 Million Award from Government of Canada

Rhea-AI Summary

SQI Diagnostics Inc. congratulates the University Health Network (UHN) on winning a $24 million award from Canada's New Frontiers in Research Fund. This award supports the development of Ex Vivo Lung Perfusion (EVLP) technology, which enhances lung transplant viability by doubling the number of donor lungs used. SQI's collaboration with UHN has led to the TORdx^TMLUNG test for immunological profiling of donor lungs. The funding aims to expand EVLP technology to other organ transplants, enhancing precision diagnostics and advancing organ preservation methods.

Positive

• UHN received a $24 million award, enhancing the partnership with SQI.
• The EVLP technology has doubled the number of viable lung transplants.
• Development of TORdx^TMLUNG rapid diagnostic test for better donor lung selection.

Negative

• None.

The New Frontiers in Research Fund – Transformation Award Will Support World-Leading Innovation in Organ Transplant.

TORONTO, Jan. 13, 2022 /PRNewswire/ - SQI Diagnostics Inc. ("SQI" or the "Company") (TSX-V: SQD) (OTCQB: SQIDF), a precision medicine and diagnostics company focused on respiratory health, congratulates the University Health Network (UHN) for winning one of only seven prestigious "New Frontiers in Research Fund – Transformation" awards.

New Frontiers in Research Fund is a program of the Government of Canada that supports lifesaving, Canadian-made innovations that can be marketed here and around the world. The Transformation stream provides large-scale support for interdisciplinary researchers to expand on areas in which Canada is a global leader.

UHN has created and launched Ex Vivo Lung Perfusion (EVLP) — technology that keeps donor lungs alive outside of the body ("ex vivo"), by delivering heat, oxygen, nutrients and other critical resources before transplant. Before EVLP, up to 80% of donor lungs were discarded because of subjective clinical assessment. Now, use of EVLP has doubled the number of lungs used for transplantation.

UHN and SQI have already developed the TORdx^TMLUNG rapid diagnostic test, which gives unprecedented immunological profiling of the donor lung and identifies those best suitable for transplantation. This new award would extend ex vivo technology and help develop new treatments to other organ transplants, together with advances in precision diagnostics.

"Our partnership with UHN on lung transplant is one of our most established and important collaborations, and we congratulate them on this well-deserved award. Led by Dr. Shaf Keshavjee, they're the top lung transplant team in the world," says Andrew Morris, Chief Executive Officer of SQI. "To be recognized and supported by the Government of Canada for this accomplishment – and just as importantly, how we accomplished it through a high-risk, high-reward approach — is incredibly gratifying. I congratulate everyone involved, especially the amazing team at UHN. This funding from New Frontiers is a crucial next step in reaching international markets and expanding ex vivo preservation and therapies beyond lungs to other organs. We join with UHN in expressing our gratitude to the Government of Canada for their visionary leadership."

"We have developed lung perfusion over a series of progressive steps, achieving Health Canada approval and global adoption. SQI has been a vital partner to develop next generation precision medicine diagnostic tools to identify even more donor lungs that are viable for transplant," says Dr. Shaf Keshavjee, Surgeon-in-Chief at UHN. "We look forward to working with SQI as our diagnostics partner for our next-level innovations in organ transplantation."

About SQI Diagnostics
SQI Diagnostics is a precision medicine and diagnostics company focussed on respiratory health. The Company's innovative respiratory health and precision medicine tests run on SQI's fully automated systems designed to simplify and improve COVID19 antibody monitoring, Rapid Acute Lung Injury testing, donor organ transplant informatics and immunological protein and antibody testing by increasing throughput, reducing costs and providing excellent data quality. For more information, please visit www.sqidiagnostics.com.

Contact:
Morlan Reddock
Chief Financial Officer
437-235-6563
mreddock@sqidiagnostics.com

FORWARD-LOOKING INFORMATION

This news release contains certain forward-looking statements, including, without limitation, statements containing the words "will", "may", "expects", "intends", "anticipates" and other similar expressions which constitute "forward-looking information" within the meaning of applicable securities laws. Forward-looking statements reflect the Company's current expectation and assumptions, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. The forward-looking statements in this news release include without limitation, statements with respect to the Private Placement, the Debenture Repayment and the use of proceeds of the Private Placement. These forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Important factors that could cause actual results to differ materially from expectations include, but are not limited to, risks related to the failure to obtain necessary regulator and stock exchange approvals for the Private Placement, general economic and market factors, competition, the development and commercialization of the Company's diagnostics tests, the effect of the global pandemic and consequent economic disruption, and the factors detailed in the Company's ongoing filings with the securities regulatory authorities, available at www.sedar.com.

Although the forward-looking statements contained herein are based on what we consider to be reasonable assumptions based on information currently available to us, there can be no assurance that actual events, performance or results will be consistent with these forward-looking statements, and our assumptions may prove to be incorrect. Readers are cautioned not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise, except as required by applicable laws.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the U.S. Securities Act or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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SOURCE SQI Diagnostics Inc.

FAQ

What is the significance of SQI Diagnostics Inc.'s partnership with UHN?

The partnership focuses on improving lung transplant viability and advancing organ transplantation technologies through innovative diagnostics.

How much funding did the University Health Network receive from the Government of Canada?

The University Health Network received a $24 million award from Canada's New Frontiers in Research Fund.

What technology is supported by the award given to UHN?

The award supports Ex Vivo Lung Perfusion (EVLP) technology, which enhances the viability of donor lungs for transplantation.

What role does SQI Diagnostics play in organ transplantation?

SQI Diagnostics collaborates with UHN to develop diagnostic tools that improve the selection of viable donor lungs and expand technology to other organs.

What impact does the new funding have on SQI Diagnostics and UHN?

The funding aims to enhance research and development in organ preservation and expand precision diagnostics, potentially opening international markets.