MEDFORD, N.Y.--(BUSINESS WIRE)--July 3, 2006--Chembio Diagnostics, Inc. (OTCBB:CEMI - News) announced today that it raised $1.3 million in secured debt financing through a private placement to four institutional investors. Each purchaser received a Secured Debenture due in 90 days with interest at 0.667% per month and a Warrant to purchase up to 400 shares of the Company’s Common Stock for each $1,000 loaned to the Company, with an exercise price of $0.75 per share and an exercise term of 5 years. The Company has agreed to file a registration statement under the Securities Act of 1933, as amended, to register the shares underlying the Warrants for resale.
