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GeneNews Raises $6.7M in Private Placement

NEW YORK (GenomeWeb) – GeneNews today announced it has accepted subscriptions for a non-brokered private placement of its common shares for gross proceeds of about C$7.2 million (US$6.7 million).

The Toronto-based molecular diagnostics shop will issue 7 million common shares at C$1.03 per share as a result of the placement, which GeneNews announced last week. In a statement, GeneNews Executive Chairman James Howard-Tripp said that the financing provides the company with the resources to build out Innovative Diagnostics Laboratory "as a strong commercialization outlet" for the firm's molecular diagnostic tests for colon cancer, lung cancer, and prostate cancer.

IDL is a CLIA laboratory jointly owned by GeneNews, Health Diagnostics Laboratory, and an unnamed US sales organization.