Director Increases Ownership in GeneNews Limited
September 19 2016 - 5:00PM
GeneNews Limited: Mr. Rory Riggs, a director of GeneNews Limited
(“
GeneNews”) (TSX:GEN), announces that, pursuant
to a private placement which took place on September 1, 2016 (the
“
Private Placement”), he, as an individual,
personally acquired 2,500,00 units (“
Units”) of
GeneNews. Each Unit is comprised of one common share
(“
Common Share”) and one-quarter of one common
share purchase warrant (each whole common share purchase warrant, a
“
Warrant”). Each Warrant will entitle the
holder to acquire one common share (a “
Warrant
Share”) at a price per Warrant Share of CAD $0.50
for a period ending August 15, 2018.
In lieu of making a cash payment by GeneNews,
2,500,000 of the Units issued with the Private Placement were used
to make a partial payment of USD $305,344 to the USD $400,000
Demand Note issued by the Company in December 2015 to Rory Riggs,
who is a major shareholder and director of the Company.
Following the partial payment, the Company’s remaining principal
under this December 2015 Demand Note is USD $94,656. The total
principal Demand Notes remaining with Mr. Riggs is USD
$244,656. Each Unit was valued at $0.16.
Prior to the Private Placement, Mr. Riggs held
directly 5,193,191 Common Shares, 325,002 Options of GeneNews
(“Options”), and 1,562,500 Warrants, entitling him to acquire an
additional 1,887,502 Common Shares. Additionally, Mr. Riggs
also held indirectly through a trust account with Robin Riggs
18,500 Common Shares. Thus, Mr. Riggs held approximately
8.26% of the issued and outstanding Common Shares on a non-diluted
basis and approximately 10.93% of the issued and outstanding Common
Shares if Mr. Riggs converts his Warrants and Options into Common
Shares.
As a result of the Private Placement, Mr. Riggs
now holds directly 7,693,191 Common Shares, 325,002 Options, and
2,187,500 Warrants, entitling him to acquire an additional
2,512,502 Common Shares. Additionally, Mr. Riggs also holds
indirectly through a trust account with Robin Riggs 18,500 Common
Shares. Thus, Mr. Riggs now holds approximately 10.63% of the
issued and outstanding Common Shares on a non-diluted basis and
approximately 13.62% of the issued and outstanding Common Shares if
Mr. Riggs converts his Warrants and Options into Common Shares.
Other Information
Mr. Riggs acquired beneficial ownership, and
control or direction, directly or indirectly, of the Common Shares
that are the subject of this press release for investment purposes.
Mr. Riggs will review his holdings from time to time and he may
increase or decrease his position as future circumstances may
dictate. Mr. Riggs currently has no present plans to increase or
decrease his holdings of securities of GeneNews.
Contact Information
Rory Riggs
110 East 59th Street
33rd Floor
New York, NY, 10022
USA