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

BURNABY, British Columbia – February 25, 2015 – LED Medical Diagnostics Inc. (“LED Medical” or the “Company”) 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.

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., a wholly owned subsidiary of Samsung Electronics, and for other working capital purposes.

About LED Medical Diagnostics Inc.

Founded in 2003 and headquartered in Burnaby, British Columbia, Canada, LED Medical Diagnostics Inc., through its wholly-owned subsidiary LED Dental, provides 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 844.952.7327 or visit www.leddental.com/investor-relations.

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