/THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO ANY UNITED STATES NEWSWIRE
SERVICES OR OTHERWISE FOR DISTRIBUTION IN THE UNITED STATES/TORONTO, Feb. 11 /CNW/ - GeneNews Limited (TSX: GEN), a 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 five-year 15% redeemable convertible secured debentures
(each, a "Debenture") in the aggregate principal amount of $1,475,210. The
issuance of these Debentures represents the third tranche of a private
placement offering of the Debentures that was initially announced on December
31, 2008. The total aggregate amount of Debentures sold to date is currently
$3,252,342 with more than one-quarter of these Debentures purchased by members
of management and the Company's board of directors.
"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
--------------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,