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GeneNews Seeks to Raise $1.9M in Private Placement

NEW YORK (GenomeWeb News) – Canadian molecular diagnostics firm GeneNews has proposed a private placement of its common shares that would bring in proceeds of C$2 million (US$1.9 million).

The firm is planning to place 4,444,444 common shares at a price of $.45 per share. It said that an unidentified labor-sponsored investment fund will subscribe for half of those shares at a total price of C$1 million, with the remainder of the shares being purchased by "arm's length parties."

The number of common shares that GeneNews expects to issue in the placement will represent around 7 percent of its 63.9 million currently issued and outstanding common shares.

"The proceeds from our current offering will assist with the continued marketing of ColonSentry in Canada as well as preparation for the commercial launch of the ColonSentry test in Europe, Asia and regions of the United States not covered by our recently announced marketing partnership with Enzo Clinical Labs," Heiner Dreismann, lead director and interim CEO of GeneNews, said in a statement.

GeneNews inked the deal last month with Enzo, under which Enzo said that it will seek CLIA waivers for GeneNews' colorectal cancer test in New York and New Jersey and market the test in those states.