/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
MISSISSAUGA, ON, Nov. 10, 2011 /CNW/ - Genesis Worldwide Inc. ("Genesis"
or the "Company"), (NEX:GWI.H), a leading provider of green and
sustainable structural building products and technology in the light
steel structural products industry, announces that it is seeking
shareholder approval for a proposed consolidation of its share capital
on the basis of one (1) new common share for ten (10) existing common
shares (the "Share Consolidation"). The Company currently has
82,167,550 common shares issued and outstanding. If the Company effects
the Share Consolidation, a total of 8,216,755 common shares will be
issued and outstanding prior to any securities being issued with
respect to the financing described below. The completion of the
proposed consolidation of common shares is subject to regulatory and
The Company also announces that it has entered into an agreement with
Canaccord Genuity Corp. (the "Agent") to act as its exclusive agent to
sell on a commercially reasonable efforts basis, in connection with a
proposed brokered private placement (the "Private Placement"), up to
approximately 6,667,000 units ("Units") of the Company on a post
consolidated basis at a price of $0.075 per Unit to raise gross
proceeds of up to $500,025. Each Unit will consist of one common share
of the Company (a "Common Share") and one Common Share purchase warrant
(a "Warrant") of the Company. Each Warrant will entitle the holder to
acquire one Common Share at an exercise price of $0.10 for a period of
12 months following the closing of the Private Placement. The net
proceeds from the Private Placement will be used by the Company for
working capital purposes. The Common Shares and Warrants comprising
the Units and the Common Shares issuable upon the exercise of the
Warrants will be subject to a hold period of four (4) months from the
closing of the Private Placement.
The closing of the Private Placement is anticipated to occur on or
following the date on which the Share Consolidation becomes effective
and is subject to receipt of applicable regulatory and shareholder
About Genesis Worldwide Inc.
Genesis is a provider of green light steel building systems and
solutions targeted at the global commercial, residential and
institutional building sectors. Genesis delivers customized turnkey
structural solutions including innovative light steel products, and
provides software packages, industrial equipment, training programs,
professional services and support ("Genesis Solution") to its customers
and partners globally. Headquartered in the Greater Toronto Area in
Ontario, Canada, Genesis has established a network of partners with
engineering, manufacturing and distribution operations in Canada, the
United States, the Middle East, Eastern Europe, Russia and South East
Asia. For additional information about the Company, visit www.genesisworldwide.com.
Caution Regarding Forward-Looking Information
Certain statements in this press release which are not historical facts
constitute forward-looking statements or forward-looking information
within the meaning of applicable securities laws ("forward-looking
statements") and are made pursuant to the "safe harbour" provisions of
such laws. Statements related to the Company's projected revenues,
earnings, growth rates, performance, business prospects and
opportunities are forward-looking statements, as are any statements
relating to future events, conditions or circumstances. The use of
terms such as "may", "will", "should", "plan", "believes", "predict",
"potential", "anticipate", "expect", "project", "target", "estimate",
"continue", and similar terms are intended to assist in identification
of these forward-looking statements. These statements are based on
certain factors and assumptions including expected growth, results of
operations, performance and business prospects, and opportunities.
These assumptions, although considered reasonable by the Company at the
time of preparation, may prove to be incorrect.
Readers are cautioned not to place undue reliance upon any such
forward-looking statements. Such forward-looking statements are not
promises or guarantees of future performance and involve both known and
unknown risks and uncertainties that may cause the actual results,
performance or achievements of the Company to differ materially from
the results, performance, achievements or developments expressed or
implied by such forward-looking statements.
Many factors could cause the actual results of the Company to differ
materially from the results, performance, achievements or developments
expressed or implied by such forward-looking statements, including,
without limitation, those factors discussed under the heading "Risk
Factors" in the Company's most recent Annual Information Form ("AIF"),
a copy of each of which is available on SEDAR at www.sedar.com.
Forward-looking statements are based on management's current plans,
estimates, projections, beliefs and opinions, and, except required by
law, the Company does not undertake any obligation to update
forward-looking statements should assumptions related to these plans,
estimates, projections, beliefs and opinions change.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE Genesis Worldwide Inc.
For further information:
Genesis Worldwide Inc.
President & Chief Executive Officer
Tel: (707) 478-6250