TORONTO, Dec. 19, 2013 (GLOBE NEWSWIRE) -- GeneNews Limited ("GeneNews" or the "Company") (TSX:GEN) announces, further to its press releases of November 13, December 5, December 12 and December 16, 2013, the conversion today of $2,728,942 outstanding convertible debentures of the Company (the "Convertible Debentures") plus accrued interest of $2,046,708 into a total of 10,160,957 common shares of the Company (the "Common Shares"). The holders of the Convertible Debentures converted the principal amount of their Convertible Debentures, together with the accrued and unpaid interest thereon, into Common Shares at a price per Common Share of $0.47, which was equal to 90% of the five (5) day volume weighted average price of the Common Shares on the Toronto Stock Exchange for the period ending on December 11, 2013. The issuance of the Common Shares represents a dilution of 30% of the 33,744,883 previously issued and outstanding Common Shares.
Private placements undertaken by the Company since December 31, 2008 have included the issuance of the Convertible Debentures, accruing simple interest at 15%. GeneNews offered this one-time conversion opportunity to all debentureholders, representing $3,141,442 in principal, in an effort to reduce indebtedness under the Convertible Debentures and, thereby, improve its working capital position. This conversion represents 87% of all principal outstanding, with $250,000 in principal (plus accrued interest) to be paid on December 31, 2013, upon maturity, and $162,500 in principal (plus accrued interest) to be paid on February 11, 2014, upon maturity. All Convertible Debentures maturing November 12, 2015 were converted into Common Shares.
"We are very pleased with the response of our Debentureholders in their support of the Company. Retaining this significant cash in the Company provides us with the financial resources to continue expanding our U.S. commercialization activities," commented GeneNews' Executive Chairman, James R. Howard-Tripp.
About GeneNews
GeneNews is a company focused on developing and commercializing proprietary molecular diagnostic tests for the early detection of diseases and personalized health management, with a primary focus on cancer-related indications. GeneNews' first product, ColonSentry®, is the world's first blood test to assess an individual's current risk for colorectal cancer. GeneNews' common shares trade on the Toronto Stock Exchange under the symbol 'GEN'. More information on GeneNews and ColonSentry®, can be found at www.GeneNews.com or www.ColonSentry.com.
Forward-Looking Statements
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 including market reaction to the conversion or the extension of Related Warrants. 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. Subject to applicable law, the Company disclaims any obligation to update these forward-looking statements.