TORONTO, CANADA, December 14, 2012- GeneNews Limited (TSX: GEN) ("GeneNews" or the "Company"), a molecular diagnostics company focused on developing blood-based biomarker tests for the early detection of diseases and personalized health management, today announced that it has accepted subscriptions for a non-brokered private placement offering of its common shares for gross proceeds of approximately $7.7 million. The size of the offering was increased from the $6.0 target previously announced on December 7, 2012, due to strong demand. The offering will result in the issuance of approximately 86.3 million common shares from treasury at a price of $0.09 per share.
"We are very pleased with the level of support from both new and existing investors which provides us with the necessary financial resources to execute on our key commercial and pipeline development objectives for 2013 and beyond," said Gailina J. Liew, President & Chief Operating Officer of GeneNews. "With a successful launch of our lead product, ColonSentry, into New York and New Jersey earlier this year, we are actively pursuing discussions to broaden the availability of ColonSentry into the rest of the United States in the near term. We are also pursuing technology improvements and will now be able to accelerate the development of new pipeline products based on our proprietary blood-based Sentinel Principle platform technology."
The securities issued pursuant to the private placement are subject to the Canadian resale rules which include a four-month restricted period before the common shares may become freely-tradeable within Canada.
This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the common shares, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The common shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, "U.S. persons," as such term is defined in Regulation S under the U.S. Securities Act, unless an exemption from such registration is available.
GeneNews is a 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 including with respect to the Company's ability to use capital in the manner anticipated. The forward-looking statements involve risks and uncertainties including market reaction to the company's use of capital or the need for additional capital by the Company through financings in order to continue its operations. 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. Subject to applicable law, the Company disclaims any obligation to update these forward-looking statements.
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