/NOT FOR DISTRIBUTION TO UNITED STATES NEWS SERVICES OR DISSEMINATION/
/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/
TORONTO, Dec. 22 /CNW/ - GeneNews Limited (TSX: GEN), an emerging molecular diagnostics and personalized health management company, today announced that it has accepted subscriptions for a non-brokered private placement offering of its common shares previously announced on December 9, 2009, for gross proceeds of $2,310,499.80. These private placement proceeds will result in the issuance of an aggregate of 5,134,444 common shares from treasury at a price of $0.45 per share. GeneNews will use the proceeds for general working capital purposes, expanding access to the ColonSentry(TM) test in Canada, the United States, Europe and Asia, and pipeline development.
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. The securities have not been registered under the U.S. Securities Act of 1933, as amended, or any state securities laws and, until so registered, may not be offered or sold in the United States or any state or to, or for the account of, U.S. persons absent registration or an applicable exemption from registration requirements. This release does not constitute an offer for sale of securities in the United States.
Holders of a majority of the Company's shares (excluding those shares held, directed or controlled by the deemed insider investment fund that participated in the private placement and its affiliates) provided their written consent for this private placement transaction. This offering provided the holders of the Company's convertible debentures with an opportunity to convert their debenture holdings into common shares of the Company. No holders of convertible debentures elected to convert their debentures pursuant to this conversion opportunity.
GeneNews is an emerging 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 been granted a U.S. patent for its core platform technology, the Sentinel Principle(R), which has the power to detect and stage virtually any disease or medical condition from a simple blood sample. GeneNews is currently applying the Sentinel Principle(R) in major areas with unmet clinical needs such as cancer, arthritis, cardiovascular disease and neurological disorders. GeneNews launched its first commercial product, ColonSentry(TM), a blood-based test to assess an individual's risk for colorectal cancer, in Canada in 2008. For more information on GeneNews and ColonSentry(TM), visit www.genenews.com or www.colonsentry.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.
SOURCE GeneNews Limited
For further information: For further information: Gailina Liew, Chief Operating Officer, (905) 739-2036, firstname.lastname@example.org; Casey Gurfinkel, (416) 815-0700 x 283, email@example.com