TORONTO, June 13, 2012 (GLOBE NEWSWIRE) -- 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) ("GeneNews") announces that he has purchased 4,890,610 common shares (the "Common Shares") of GeneNews for an aggregate cash consideration of $537,967.10 through a previously announced rights offering (the "Rights Offering") by GeneNews which completed on June 12, 2012.
As a result of his purchase, Mr. Riggs currently owns or exercises control over 17,755,748 Common Shares as well as 631,500 options to purchase Common Shares (the "Options") and 3,813,956 Common Share purchase warrants (which are exercisable into 4,004,654 Common Shares) (the "Warrants"). Prior to the Rights Offering, Mr. Riggs owned or exercised control over 12,865,138 Common Shares, 631,500 Options and 3,813,956 Warrants.
GeneNews currently has 116,122,646 Common Shares issued and outstanding. If the Options and Warrants owned by Mr. Riggs were exercised and converted into Common Shares, Mr. Riggs's shareholdings would represent approximately 19.1% of the currently issued and outstanding Common Shares.
Mr. Riggs purchased the Common Shares for investment purposes and he will review his holdings from time to time and he may increase or decrease his position as future circumstances may dictate. Mr. Riggs currently has no present plans to increase or decrease his holdings of securities of the Company.
Mr. Riggs entered into a standby guarantee agreement with the Company, among others, dated April 16, 2012 (the "Standby Guarantee"). Pursuant to the Standby Guarantee, Mr. Riggs and others agreed, subject to certain terms, conditions and limitations, to exercise rights and purchase Common Shares offered under the Rights Offering that were not otherwise purchased thereunder, so that the gross proceeds raised through the right offering would be at least $1,000,000. Of the 4,890,610 Common Shares acquired by Mr. Riggs, 174,325 Common Shares were acquired through the Standby Guarantee.