Spectral Diagnostics Inc. announced the closing of its previously announced private placement of 48,750,000 units of the company, for gross proceeds of $19.5 million.

The company also issued 2,890,625 common shares to GrowthWorks Canadian Fund Ltd. at a deemed price of $0.40 per common share as full repayment and final settlement of a non-interest bearing, unsecured convertible promissory note in the principal amount of $1,156,250 dated June 19, 2006 issued by the company to GrowthWorks.

“We are very pleased to have completed this transaction with the support of new and existing shareholders. This successful financing indicates that investors recognize the significant commercial opportunity of the Toraymyxin treatment for severe sepsis, in combination with our EAA diagnostic, representing a potential $1 billion market in the United States,” said Anthony Businskas, executive vice president and CFO of Spectral. ”We now have the financial resources in place to begin a pivotal trial in the U.S. in the first half of 2010.”