Chairman Rory Riggs Increases Ownership in GeneNews Limited



    TORONTO, Jan. 27 /CNW/ - Mr. Rory Riggs of 110 East 59th Street, 33rd
Floor, Suite 3302, New York, NY, 10022, USA, chairman of the board of
directors of GeneNews Limited (TSX: GEN) announces that he has purchased a
five-year 15% redeemable convertible secured debenture of the Company (a
"Debenture") with a principal amount of $608,350. Pursuant to the terms of the
purchase of the Debenture, 2,433,400 common share purchase warrants
("Warrants") were issued to Mr. Riggs. Each Warrant is exercisable for a
period of 36 months following the date of issuance (subject to the
Corporation's acceleration right, described below). Each Warrant may be
exercised to acquire a common share of the Corporation (a "Common Share") at a
price of $0.25. The Corporation has the right to accelerate the expiry date of
the Warrants if the Common Shares trade with a closing price on the TSX of
greater than $2.00 per Common Share for 20 consecutive trading days. Under
such circumstances, the Corporation will have the right to accelerate the
expiry date of the Warrants to the date that is 30 days after the Corporation
provides notice that it has elected to exercise its acceleration right. The
Debenture and the Warrants were issued to Mr. Riggs pursuant to a private
placement offering by the Company.
    As a result of his purchase, Mr. Riggs currently owns or exercises
control over 3,867,998 Common Shares as well as 505,000 options for Common
Shares and 2,433,400 Warrants. Accordingly, if such options and Warrants were
exercised and converted into Common Shares, Mr. Riggs shareholdings would
represent approximately 12% of the currently issued an outstanding Common
Shares (note: the Company currently has 55,883,437 Common Shares outstanding).
Mr. Riggs has indicated that he purchased the Debenture and Warrants for
investment purposes and that he will review his holdings from time to time and
that he may increase or decrease his position as future circumstances may
dictate.





For further information:

For further information: 


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890