TORONTO, July 14, 2017 /PRNewswire/ - At its annual and
special meeting of shareholders held on June
29, 2017, GeneNews Limited ("GeneNews" or the "Company")
(TSX:GEN) sought and received disinterested shareholder approval
for the issuance of common shares from treasury (the "Common
Shares") to certain members of its Board (the "Participating
Directors") who, in order to assist the Company address its payment
obligations while preserving its cash resources, were considering
accepting payment of up-to the total amount of fees and expenses
earned and unpaid at the time of the Meeting, through the issuance
of Common Shares.
GeneNews announced today the issuance of an aggregate of
2,279,078 Common Shares to make a payment of approximately USD
$390,000 to Participating Directors,
with the remaining outstanding balance of USD $40,000 to be paid in cash. The conversion of
payment obligations to Common Shares was calculated based on the
five day volume-weighted average price (the "5 day VWAP") on
May 26, 2017 of the Common Shares on
the Toronto Stock Exchange, which was CAD $0.23, and the Bank of Canada's foreign exchange conversion rate from
US to Canadian dollars at the close of business on May 28, 2017.
The Company has determined that while the issuance of the
Directors' Shares may be a related party transaction pursuant to
Multilateral Instrument 61-101 – Special Transactions ("MI
61-101"), the Company is not required to obtain a formal valuation
under subsection 5.4(1) of MI 61-101 for the issuance of the
Directors' Shares. In addition, the exemption from the minority
approval requirement provided for under subsection 5.7(1)(a) of MI
61-101 can be relied on as neither the fair market value of the
Directors' Shares nor the fair market value of the consideration
paid for such Directors' Shares exceeds 25% of the Company's market
capitalization.
About GeneNews
GeneNews, an innovator in the liquid biopsy space, 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 outcomes through the early diagnosis of disease. Our
Richmond, Virginia-based
Innovative Diagnostic 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
four prevalent cancer types - colon, lung, prostate and breast.
GeneNews' common shares trade on the Toronto Stock Exchange under
the symbol 'GEN'. More information on GeneNews and IDL can be found
at www.GeneNews.com and www.myinnovativelab.com, respectively.
Forward-Looking Statements
This press release contains forward-looking statements
identified by words such as "expects", "will" and similar
expressions, which reflect the Corporation's current expectations
regarding future events. The forward-looking statements involve
risks and uncertainties that could cause the Corporation's actual
events to differ materially from those projected herein. Investors
should consult the Corporation'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 Corporation disclaims any obligation to update
these forward-looking statements, except as required by
law.
SOURCE GeneNews Limited