NEW YORK (GenomeWeb News) – GeneNews today said that it has raised an additional C$1,475,210 (US$1.2 million) through the third tranche of a private placement of debentures.
The total amount of debentures sold to date in the offering is C$3,252,342. GeneNews said that more than one quarter of the debentures were purchased by members of management and the board of directors.
The Toronto-based firm said that proceeds from the placement would be used for general working capital purposes and continued marketing of its ColonSentry test in Canada, as well as for pre-launch activities for the test in the US and Asia.
GeneNews said that it has accepted subscriptions for five-year, 15 percent redeemable convertible secured debentures. The 15 percent annual interest will be paid upon the earlier of maturity, conversion, or redemption of the debentures.
Each purchaser of a debenture will also receive one warrant for every C$.25 of principal amount of their debenture. Each of those warrants is exercisable into GeneNews common shares for a period of 36 months following the date of issuance at a price of C$.25 per common share.