GeneNews Provides Update on GEM and Alumina Financings
October 03 2016 - 8:00AM
Further to its press releases issued on April 28, June 9 and July
26, 2016, GeneNews Limited (“GeneNews” or the “Company”) (TSX:GEN)
provided an update today on its financing activities.
Pursuant to its capital commitment agreement
(the “CC Agreement”) with GEM Global Yield Fund LLC SCS (“GEM”),
GeneNews has made its second draw down in the amount of CAD
$280,171. In connection with the draw down, 1,647,677 common shares
were issued to GEM at prices per share between CAD $0.149 and
0.176, which was equal to a 10 per cent discount to the market
price of the common shares based on the immediately preceding 5-day
volume weighted average. As part of the transaction, GeneNews also
issued 1,647,677 warrants to GEM. The warrants have an exercise
price of CAD $0.50 per common share and may be exercised for five
years. On the first anniversary of the date of the CC Agreement, if
the market price of GeneNews’ common shares is less than 90% of the
then-current exercise price of the warrants, the exercise price of
the warrants will adjust to 105% of the market price of the common
shares at that time.
In addition, GeneNews announced that it has paid
GEM Investment America, LLC a one-time commitment fee equal to CAD
$140,000 via the issuance of 736,843 common shares at a price of
per share of CAD $0.19, which was triggered by the second draw
under the CC Agreement.
Finally, GeneNews announced that, in accordance
with its convertible notes financing agreement (the “Notes
Agreement”) with Alumina Partners LLC (“Alumina”), Alumina has
elected to convert all of the previously disclosed US$200,000
initial draw down, plus accrued interest, into GeneNews common
shares. As a result, GeneNews has issued 1,499,106 common shares to
Alumina at a price per share of CAD $0.19 per share.
About GeneNews
GeneNews is committed to becoming a leader in
advanced diagnostics and personalized medicine, serving as a strong
commercialization outlet for early detection of cancer and other
chronic diseases. Our mission is to identify, assess and make
commercially available a comprehensive menu of diagnostics that
provide physicians and patients with personalized clinical
intelligence and actionable information to improve health out-comes
through the early diagnosis of disease. Our Richmond,
Virginia-based Innovative Diagnostics Laboratory clinical reference
lab specializes in traditional and advanced clinical evidence-based
blood testing that helps find, understand, and address cancer risk
in patient populations. Currently, IDL offers risk assessment blood
tests for the three most prevalent cancer types - colon, lung and
prostate. GeneNews' common shares trade on the Toronto Stock
Exchange under the symbol 'GEN'. More information on
GeneNews can be found at www.GeneNews.com.
Forward-Looking Statements
This press release contains forward-looking
statements identified by words such as "expects", "will" and
similar expressions, which reflect the Company's current
expectations regarding future events, including the restructuring
of its business. These forward-looking statements involve risks and
uncertainties and material assumptions - including those related to
general business and economic conditions as well as our ability to
complete an orderly restructuring of the Company's operations which
may include a sale, merger, strategic financing or other business
combination - that could cause the Company's actual events to
differ materially from those projected herein. Investors should
consult the Company's ongoing quarterly filings and annual reports
for additional information on risks and uncertainties relating to
these forward-looking statements. The reader is cautioned not to
rely on these forward-looking statements. The Company disclaims any
obligation to update these forward-looking statements, except as
required by law.
Company Contact:
James R. Howard-Tripp
Chairman & CEO
Office: (905) 209-2030
jhoward-tripp@genenews.com
Investor & Media Contact:
Stephen Kilmer
Kilmer Lucas Inc.
Office: (647) 872-4849
stephen@kilmerlucas.com