SOURCE: LED Medical Diagnostics Inc.

LED Medical Diagnostics Inc.

February 25, 2015 08:00 ET

LED Medical Diagnostics Announces Completion of Oversubscribed Non-Brokered Private Placement Totaling CDN$2.65 Million

BURNABY, BC--(Marketwired - February 25, 2015) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

LED Medical Diagnostics Inc. ("LED Medical" or the "Company") (TSX VENTURE: LMD) (OTCQX: LEDIF) (FRANKFURT: LME) announced today that it has completed a previously announced non-brokered private placement with an oversubscribed total of 10,605,000 units at an issue price of CDN$0.25 per unit for total gross proceeds of approximately CDN$2.65 million. Each unit is comprised of one common share and one common share purchase warrant with each warrant entitling the holder to acquire one common share at an exercise price of US$0.25 for a period of 24 months. All of the securities issued in connection with the private placement will be subject to a restricted period that expires four months after the issuance date. 

The proceeds will be used by LED Medical to support product development related to VELscope® Vx, to replenish imaging product inventory, including an initial stocking order related to the recent Canadian exclusive distribution agreement with Ray Co. and for other working capital purposes.

Insiders, including officers, directors and employees purchased a total of 2,245,000 units in the offering.

In connection with the private placement, LED has agreed to pay cash commissions of CDN$22,000 and to issue 64,000 finder's warrants to arm's length finders. Each finder's warrant is non-transferable and exercisable into one common share at an exercise price of US$0.25 for a period of 24 months.

The private placement, including payment of finder's fees, is subject to final approval of the TSX-Venture Exchange. The participation by insiders in the private placement is considered to be a "related party transaction" under the policies of the TSX-Venture Exchange. The transaction is exempt from the formal valuation and minority shareholder approval requirements as neither the fair market value of the securities being issued nor the consideration being paid exceeds 25% of LED's market capitalization.

About LED Medical Diagnostics Inc.

Founded in 2003 and headquartered in Burnaby, British Columbia, Canada, LED Medical Diagnostics Inc., through its wholly-owned subsidiaries LED Dental Inc. and LED Dental Ltd., provide dentists and oral health specialists with advanced diagnostic imaging products and software, in addition to the award-winning VELscope® Vx tissue fluorescence visualization technology. Backed by an experienced leadership team and dedicated to a higher level of service and support, LED Dental is committed to providing dental practitioners with the best technology available by identifying and adding leading products to its growing portfolio.

The Company is currently listed on the Toronto Stock Exchange (TSX-V) under the symbol "LMD", the OTCQX under the symbol "LEDIF", as well as the Frankfurt Stock Exchange under the symbol "LME". For more information, call 884.952.7327 or visit www.leddental.com/investor-relations.

Neither the 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.

Forward Looking Statement

This press release contains statements which, to the extent that they are not recitations of historical fact, may constitute forward-looking information under applicable Canadian securities legislation that involve risks and uncertainties. Such forward-looking statements or information include statements regarding, but not limited to the Company's future growth strategy, its distribution strategy and product offerings, potential expansion of the Company's technology to other medical applications or markets, or the potential introduction of new technologies by the Company. Persons reading this press release are cautioned that such statements or information are only predictions, and that the Corporation's actual future results or performance may be materially different. Factors that could cause actual events or results to differ materially from those suggested by these forward-looking statements include, but are not limited to competition risks, distributor risks, product development risks such as regulatory, design, intellectual property and other factors described in the Corporation's reports filed on SEDAR including its Annual Information Form and financial report for the year ended December 31, 2013. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. All forward-looking statements made in this press release are qualified by this cautionary statement and there can be no assurance that actual results or developments anticipated by the Company will be realized. The Company disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

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