The information set forth under Item 3.02 of this current report on Form 8-K is hereby incorporated by reference into this Item 1.01.

On December 19, 2006, LogicVision, Inc. (the “Company”) completed a private placement of 3,905,000 shares of the Company’s common stock (“Common Stock”) to certain accredited investors at a price per share equal to $0.81, as well as the sale 95,000 shares of Common Stock to certain members of the Company’s management at a price per share equal to $0.92 (the closing bid price of the Common Stock on the NASDAQ Global Market on December 18, 2006), each pursuant to the terms of a Common Stock Purchase Agreement, dated December 19, 2006 (the “Purchase Agreement”). Net proceeds to the Company from the sale of the shares of Common Stock were approximately $3 million. Pursuant to the terms of a Registration Rights Agreement, dated December 19, 2006 (the “Registration Rights Agreement”), the Company agreed to register for resale the Common Stock issued in this private placement.

The foregoing summary descriptions of the Purchase Agreement and the Registration Rights Agreement do not purport to be complete and are qualified in their entirety by reference to the Purchase Agreement and the Registration Rights Agreement, which are attached as Exhibits 10.1 and 10.2 hereto, respectively, and incorporated herein by reference.

The shares issued in the private placement were issued pursuant to an exemption under Section 4(2) of the Securities Act of 1933 and the rules and regulations promulgated thereunder. The securities offered have not been registered under the Securities Act of 1933 or any state securities laws and unless so registered may not be offered or sold in the United States (or to a U.S. person) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933 and applicable state securities laws. This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities.