SQI Diagnostics Inc. (TSX-V: SQD) (OTCQB: SQIDF), a life sciences and diagnostics company that develops and commercializes proprietary technologies and products for advanced microarray diagnostics (“SQI”), and Microdrop LLC, a direct to consumer healthcare company focused on next generation digital and technology solutions that increase patient awareness to life-altering conditions, today announced a commercial agreement to serve the rapidly-growing direct-to-consumer healthcare diagnostic testing market valued at $173M (USD) in 2016 and that is predicted to grow to $350M by the year 2020 (Kalorama Information, January 2016).

The agreement includes, among other things, Microdrop licensing the rights to run SQI’s celiac and wheat allergy test, as well as SQI’s rheumatoid arthritis test in the direct to consumer market. Such rights are subject to standard performance obligations by both parties including a minimum number of kits to be purchased by Microdrop to maintain exclusivity; and that such minimum purchases grow over time.  Microdrop now represents the 4^th new SQI customers that brings a recurring revenue opportunity from diagnostic testing in the customer’s CLIA laboratory. The agreement also calls for Microdrop to purchase two sqidlite™ testing systems upon signing the agreement.

According to the University of Chicago Celiac Disease Center: “Celiac Disease affects at least 3 million Americans. It is the most common — and one of the most underdiagnosed –- hereditary autoimmune conditions in the United States today. The average length of time it takes for a symptomatic person to be diagnosed with celiac disease is the US is four years; this type of delay dramatically increases an individual’s risk of developing auto-immune disorders, neurological problems, osteoporosis and even cancer.” Leveraging Microdrop’s proprietary and highly sensitive platform, consumers will have the ability to remotely monitor or identify whether they have a condition, through a few drops of blood, and take actionable intervention with their healthcare provider.

The problem is no better with Rheumatoid Arthritis which afflicts 1% of the world’s population and where 1.3 million prescriptions will be written this year.

In the case of both diseases, SQI’s partnership with Microdrop will enable millions of patients and their physicians to get faster, easier diagnoses of their affliction. This, in turn, will accelerate access to treatment.

Following the launch and roll-out of these first two testing products over the next two quarters, the companies will work together to launch new tests for the rapidly growing direct-to-consumer market for other diseases.

About SQI Diagnostics

SQI Diagnostics is a life sciences and diagnostics company that develops and commercializes proprietary technologies and products for advanced microarray diagnostics. The Company’s proprietary microarray tests and fully-automated systems are designed to simplify protein and antibody testing workflow, increase throughput, reduce costs and provide excellent data quality.

About Microdrop LLC

Microdrop LLC is a direct to consumer healthcare company focused on next generation technology solutions that increase patient awareness to life-altering conditions through ultra-precise at-home monitoring products.