TORONTO, ONTARIO--(Marketwire - June 9, 2011) - GeneNews Limited ("GeneNews" or the "Company") (TSX:GEN) announces the successful completion of the early warrant exercise incentive program (the "Warrant Exercise Program") and debenture conversion opportunity (the "Debenture Conversion Opportunity") previously described in the Company's press releases dated April 18, 2011 and May 17, 2011.
A total of 74% of eligible warrants were exercised in the Warrant Exercise Program, resulting in:
the receipt by the Company of gross proceeds of $2,992,007;
the issuance of 12,752,208 common shares of the Company pursuant to the exercise of the existing eligible warrants; and
the issuance of 12,752,208 incentive warrants.
In addition, holders of 25% of eligible convertible debentures participated in the Debenture Conversion Opportunity, resulting in the issuance of 6,397,846 common shares and the retirement of 26% of the Company's aggregated convertible debenture and accrued interest obligations.
"We are grateful for the ongoing confidence that our existing investors have demonstrated by participating in these two programs. This support strengthens our ability to sustain our commercialization momentum without the distractions of an external financing as we look towards the US launch of ColonSentry and expansion of our marketing partner network," said Gailina J. Liew, President and Chief Operating Officer of GeneNews.
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 a patented core platform technology, the Sentinel Principle®, 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® in major areas with unmet clinical needs such as cancer, arthritis, cardiovascular disease and neurological disorders. GeneNews launched its first commercial product, ColonSentry™, a blood-based test to pre-screen and assess an individual's risk for colorectal cancer, in Canada in 2008, where it has partnered with Gamma-Dynacare. The company's marketing partners, Enzo Clinical Labs, GeneDiagnostics, and GeneNews Diagnostics, are expected to launch the ColonSentry™ test in the United States, China and Malaysia in 2011. For more information on GeneNews and ColonSentry™, 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, annual information form 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.