"We are pleased with our investors' strong commitment to provide us with additional resources to build on the momentum from our recent Canadian launch of the ColonSentry(TM) test and prepare for its commercialization in the United States and Asia," said Dr. Heiner Dreismann, Lead Director and Interim CEO of GeneNews.
Each Debenture will be issued at par with no discount or premium to the principal amount of the Debenture. The 15% per annum simple interest that is payable on the Debentures is to be accrued and paid only upon the earlier of maturity, conversion or redemption of the Debentures. No commission or finder's fee is payable in regard to the issuance of the Debentures.
In consideration for purchasing a Debenture, each initial purchaser of a Debenture shall also receive one warrant ("Warrant") for every $0.25 of principal amount of their Debenture. Each Warrant is exercisable into common shares of the Company ("Common Shares") for a period of 36 months following the date of issuance at a price of $0.25 per Common Share.
The net proceeds from the sale of the Debentures will be used for general working capital purposes, the continued marketing of the ColonSentry(TM) test in Canada and pre-launch preparation for the commercial launch of the ColonSentry(TM) test into the United States and Asia. ColonSentry(TM) is the world's first blood-based test to determine a person's current risk for colorectal cancer. For more information on the test, please visit www.ColonSentry.com.
About GeneNews
GeneNews is focused on the application of functional genomics to enable early diagnosis and personalized therapeutic intervention based on disease-specific biomarkers. The Company has developed a novel approach, the Sentinel Principle(TM), to detect and stage virtually any disease or medical condition from a simple blood sample. GeneNews is currently applying the Sentinel Principle(TM) in major areas with unmet clinical needs such as cancer, arthritis, cardiovascular disease and neurological disorders. For more information on GeneNews, visit www.genenews.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.
For further information: James Smith, (416) 815-0700 x 229, jsmith@equicomgroup.com