Toray Industries makes $5 million strategic investment in Spectral Diagnostics

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[{"type":"text","content":"\n\n\n\n\n\nTORONTO, March 7, 2013 /CNW/ - Spectral Diagnostics Inc. (TSX: SDI) (OTC QX: DIAGF) (\"Spectral\", or the \"Company\") today announced that it has entered into a private placement\n agreement with Toray Industries, Inc. (\"Toray\"), pursuant to which Toray will invest $5 million in Spectral.\n\n\nUnder the terms of the private placement (the \"Private Placement\"), the Company will issue 16,666,667 common shares in the capital of\n the Company (\"Common Shares\") to Toray at a price of $0.30 per Common Share, for gross proceeds of\n $5 million.\n\n\nThe net proceeds of the Private Placement will be used to continue to\n support the Company's EUPHRATES clinical trial and for general corporate purposes. Following the closing of the Private\n Placement, Toray's investment will represent approximately 12.8% of the\n issued and outstanding Common Shares, calculated on a non-diluted\n basis. Under the terms of the Private Placement, Toray will be entitled\n to nominate one director to the Spectral board for as long as it holds\n 10% or more of the issued and outstanding Common Shares (calculated on\n a non-diluted basis).\n\n\n\"This strategic investment not only provides additional funds for our\n clinical trial, but also strengthens the existing collaborative\n relationship we have with Toray,\" said Anthony Businskas, Executive\n Vice President and CFO of Spectral. \"We will work with Toray to\n complete clinical research for U.S. FDA market approval of Toraymyxin,\n and we will seek to further expand acceptance of the EAATM/ Toraymyxin theranostic in jurisdictions outside of Japan.\"\n\n\nClosing of the Private Placement is subject to the approval of the\n Toronto Stock Exchange and other customary closing conditions. The\n Private Placement is currently expected to close at the beginning of\n April, 2013.\n\n\nAbout Spectral Diagnostics\n\n\nSpectral is a Phase III company seeking U.S. FDA approval for its lead\n theranostics product (Toraymyxin) for the treatment of septic shock.\n Toraymyxin is a therapeutic hemoperfusion device that removes\n endotoxin, which can cause sepsis, from the bloodstream. Directed by\n the Company's Endotoxin Activity Assay (EAA™), the only FDA-cleared\n diagnostic for the risk of developing sepsis, Spectral's EUPHRATES\n trial is the world's first theranostics trial in the area of...

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