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GeneNews Raises $2.5M in Rights Offering

NEW YORK (GenomeWeb News) – GeneNews today announced it has completed its rights offering, raising C$2.6 million ($2.5 million) in gross proceeds.

The Toronto-based molecular diagnostics firm issued a total of more than 23 million common shares under the offering at C$.11 per share. The offering, which was announced in April, was fully prescribed.

Proceeds will go toward the commercialization in the US of GeneNews' lead product, ColonSentry, which was recently launched in New York and New Jersey. The blood-based test is for stratifying the risk for colon cancer.

The company said tha tin connection with the rights offering and the terms of all outstanding common share purchase warrants, effective as the end of the business day on June 5, the exercise price of the warrants has been adjusted to C$.24 from C$.25 and the number of common shares issuable upon the exercise of each warrant has been adjusted to 1.05 shares from 1 share.

As of today, there are 19,981,178 warrants outstanding, GeneNews said.

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