LexaGene Holdings closes $5M bought deal financing

News Release

LexaGene Holdings Inc. Announces Closing of C$5.0 Million Bought Deal Financing

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

VANCOUVER, BC – (December 19, 2017) – LexaGene Holdings Inc. (TSX VENTURE: LXG) (OTCQB: LXXGF) (“LexaGene” or the “Company”) is pleased to announce that it has closed its previously announced bought deal financing of 4,360,000 units (the “Units”) at an offering price of C$1.15 per Unit (the “Offering”) for aggregate gross proceeds to the Company of C$5,014,000. Each Unit consists of one common share (a “Share”) and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”) of the Company, with each Warrant entitling the holder thereof to acquire, subject to adjustment in certain circumstances, one Share in the capital of the Company at a price of C$1.45 until December 19, 2020.

The Offering was conducted by a syndicate of underwriters led by Canaccord Genuity Corp. and including PI Financial Corp. and Echelon Wealth Partners Inc.

The Units were offered by way of a short form prospectus in all of the provinces of Canada except Quebec pursuant to National Instrument 44-101 Short Form Prospectus Distributions. The Company intends to use the net proceeds from the Offering for funding its international expansion, accelerating the commercializing process and deployment of its Microfluidic technology, and for working capital purposes.

The securities offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This news release will not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

Dr. Jack Regan, LexaGene’s CEO and founder states, “This infusion of capital will allow LexaGene to grow its operations in Massachusetts, and to build out a team of talented scientists and engineers to help us meet our development goals. We are thrilled with our advancement to date and look forward to rapidly accelerating our progress in 2018.”

ON BEHALF OF THE BOARD
“Daryl Rebeck”
Daryl Rebeck: President and Director
and
“Jack Regan”
Dr. Jack Regan: Founder, Chief Executive Officer, and Director

For further information, please contact:
Caitlin Kasunich (ckasunich@kcsa.com)

About LexaGene Holdings Inc.

LexaGene is a biotechnology company developing the very first fully automated pathogen detection platform that is open-access. The open-access feature will empower end-users to target any pathogen of interest, as they can load their own real-time PCR assays onto the instrument for customized pathogen detection. End-users simply need to collect a sample, load it onto the instrument with a sample preparation cartridge, and press ‘go’. The instrument is expected to offer excellent sensitivity, specificity, and breadth of pathogen detection. The instrument will be able to process six samples at a time, in an on-demand fashion, returning results in about 1 hour. The company expects to sell its technology in the food safety, veterinary diagnostics, water quality monitoring, and aquaculture pathogen surveillance markets.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this news 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.