SQI Diagnostics Inc. announced that SQI and Pivot Financial (Pivot) have agreed to extend the maturity date of SQI's $7.5 million credit facility (the Credit Facility) with Pivot from October 28, 2022 to January 31, 2023 and to the temporary deferral of 50% of the interest payments thereunder (the Pivot Interest Deferral). SQI also announced that the holders of its $4.05 million principal amount 8% secured debentures dated June 17, 2022 (the Debentures), which holders are controlled by certain insiders of SQI who are also control persons of SQI (the Insider Lenders), have agreed to the temporary deferral of all interest payments under the Debentures (the Debentures Interest Deferral, together with the Pivot Interest Deferral, the "nterest Deferrals). All other terms of the Credit Agreement and Debentures remain unchanged.

Interest Deferrals: The purpose of the Interest Deferrals is to provide the Company with additional working capital in the short term. All deferred interest under the Credit Facility pursuant to the Pivot Interest Deferral and all deferred interest under the Debentures Interest Deferral will become due upon demand by Pivot and the holders of the Debentures, respectively, which demand may not be made earlier than December 1, 2022. The Debentures Interest Deferral may be considered a related party transaction within the meaning of TSXV Policy 5.9 and Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (MI 61-101).

SQI relied on exemptions from the formal valuation and minority approval requirements in sections 5.5(b) and 5.7(f) of MI 61-101 in respect of the Debentures Interest Deferral. Credit Agreement: As previously announced, the Company entered into a credit agreement with Pivot, an arm's length third party to the Company, relating to the extension of a short-term senior secured Credit Facility dated February 11, 2022 to satisfy the cash consideration payable by SQI pursuant to the Company's acquisition of substantially all of the assets underlying Precision Biomonitoring Inc.'s human diagnostic COVID-19 PCR testing business and its TripleLock™ molecular diagnostic testing technology and for general working capital. The Insider Lenders participated in funding 50% of the principal amount advanced under the Credit Facility pursuant to the terms of participation agreements entered into between Pivot and the Insider Lenders dated February 14, 2022, as amended.

The maturity date of the Credit Facility was previously extended to October 28, 2022 on June 17, 2022. Debentures: As previously announced, the Company completed a non-brokered private placement of the Debentures at a price of $1,000 per Debenture for aggregate gross proceeds of $4,050,000 on June 17, 2022. All of the Debentures are held indirectly by the Insider Lenders.

The Debentures mature on June 17, 2024.