DiagnosTear plans private placement raising up to C$1.4M

DiagnosTear Technologies Inc. (CSE: DTR) (FSE: X8F) announced a non-brokered private placement of up to 2,800,000 units at C$0.50 per unit, seeking gross proceeds of up to C$1,400,000.

Each unit consists of one common share and one warrant exercisable at C$1.00 per share for 12 months from the closing date. BioLight Life Sciences Ltd., the parent company of DiagnosTear, and Elcam Medical Ltd. are each expected to participate for up to one-third of the total offering.

The company said proceeds will be used for working capital and general corporate purposes. No finder's fees will be paid in connection with the offering.

Certain insiders may also participate, which would constitute a related party transaction under Multilateral Instrument 61-101. DiagnosTear said it expects such participation to qualify for an exemption from formal valuation and minority shareholder approval requirements, as insider subscriptions are not expected to exceed 25% of the company's market capitalization.

Securities issued will be subject to a statutory hold period of four months and one day from issuance. Closing remains subject to approval by the Canadian Securities Exchange.

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