GeneNews Completes Rights Offering
TORONTO, CANADA (June 12, 2012):
GeneNews Limited ("GeneNews" or the "Company") (TSX:GEN) is pleased to announce that it has completed its previously announced offering of rights (the "Rights Offering") to holders of its common shares (the "Common Shares") of record at the close of business on May 1, 2012.
GeneNews issued a total of 23,224,529 Common Shares under the Rights Offering at a price of $0.11 per Common Share for gross proceeds of approximately $2,554,698. The Rights Offering was fully subscribed with 11,575,301 Common Shares issued pursuant to the basic subscription privilege, 10,458,417 Common Shares issued pursuant to the additional subscription privilege, and 1,190,811 Common Shares issued pursuant to the stand-by guarantee.
"We thank our shareholders for their vote of confidence in this successful rights offering. We will use the proceeds to intensify and expand our US commercialization efforts following the recent launch of our lead product, ColonSentry, in the states of New York and New Jersey," said Gailina J. Liew, President & Chief Operating Officer of GeneNews Limited.
In connection with the Rights Offering and the terms of all outstanding Common Share purchase warrants (the "Warrants"), the Company also announced, effective as of 5:01 p.m. (Toronto time) on June 5, 2012, that the exercise price of the Warrants has been adjusted from $0.25 to $0.24 and that the number of Common Shares issuable upon the exercise of each Warrant has been adjusted from 1.00 to 1.05 Common Shares. As of today, there are 19,981,178 Warrants currently outstanding with 15,730,274 Warrants expiring on February 1, 2013 and 4,250,904 Warrants expiring on June 1, 2013.
No U.S. Registration
This news release does not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein in the United States or to or for the account or benefit of a U.S. person (a "U.S. Person"), as defined under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or a person in the United States. The securities described herein have not been and will not be registered under the U.S. Securities Act and may not be offered or sold in the United States or to or for the account or benefit of a U.S. Person or a person in the United States absent registration under the U.S. Securities Act and applicable state securities laws, or absent an available exemption from such registration requirements.
GeneNews is an emerging molecular diagnostics company focused on the application of functional genomics to enable early diagnosis and personalized health management based on disease-specific biomarkers. The Company has a patented core platform technology, the Sentinel Principle®, which has the power to detect and stage a range of diseases or medical conditions from a simple blood sample. GeneNews is currently applying the Sentinel Principle® in major areas with unmet clinical needs such as cancer, arthritis, cardiovascular disease and neurological disorders. GeneNews' lead product, ColonSentry®, is the world's first blood test to pre-screen and assess an individual's current risk for colorectal cancer. For more information on GeneNews and ColonSentry®, go to www.GeneNews.com or www.ColonSentry.com.
This press release contains forward-looking statements, which reflect the Company's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual events could 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.