TORONTO, ON / ACCESSWIRE / April 2, 2019 / GeneNews Limited (TSX: GEN) ("GeneNews" or the "Company") today announced that the CDN $510,000 second tranche of the private placement financing has closed.
A total of 14 investors participated in the private placement for total gross proceeds of $510,000. The private placement was structured as units at CDN$0.08, with each unit comprising one common share and one half warrant, whereby each whole warrant can be exercised into common shares for a period of 36 months at a price of CDN$0.10
Tranche one of the private placement was initiated on February 8, 2019 with a unit price of CDN$0.05 and at an approximately 16% discount to the 5-day VWAP of CDN$0.06. It was quickly very significantly oversubscribed. Tranche two of the private placement was immediately initiated and was priced on March 1 at CDN$0.08 per unit, an approximately 16% discount to the prevailing 5-day VWAP of CDN$0.09. Tranche two was also, immediately significantly oversubscribed.
"We have taken the company to significant new groups of investors and, it is their excitement and interest in supporting us in reaching our goals, that have fueled this private placement," said James R Howard-Tripp, Chief Executive Officer of GeneNews Limited. "It is now three years since our buy-out of the full operation and these years of diligent work are paying off - it is now a matter of execution. The increased funding will help us to launch the Patient Directed Testing Telehealth program, as well as support the continued build-out of sales and marketing initiatives targeting physician practices, large healthcare systems and self-insured employers who will drive the significant growth in test adoption we have been planning for."
About GeneNews Limited
GeneNews is dedicated to developing and commercializing innovative solutions for early cancer detection. Our mission is to provide advanced diagnostics that can help physicians identify cancer in their patients at the earliest possible stage, when it is the most curable. As early pioneers in the liquid biopsy space, GeneNews developed one of the first blood-based biomarker test for the early identification of Colorectal Cancer. ColonSentry® uses the company's proprietary Sentinel Principle technology which is based on the scientific observation that circulating blood reflects, in a detectable way, what is occurring throughout the body. Today, more than 100,000 patients in the U.S. have benefited from the ColonSentry test. GeneNews next generation test, Aristotle, will use this proven technology to test for ten cancers from a single blood sample. In addition to building a pipeline of products for early cancer detection, GeneNews operates a CAP accredited, clinical reference lab based in Richmond, Virginia that offers the ColonSentry® test as well as licensed biomarker tests for lung, breast and prostate cancers. www.GeneNews.com.
This press release contains forward-looking statements identified by words such as "expects," "will" and similar expressions, which reflect the Company's current expectations regarding future events. The forward-looking statements involve risks and uncertainties that could cause the Company's actual events to 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, except as required by law.
James R. Howard-Tripp
Chairman & CEO
Tel. (905) 209-2030
SOURCE: GeneNews Limited