TORONTO, Sept. 19, 2016 (GLOBE NEWSWIRE) -- GeneNews Limited: Mr. Rory Riggs, a director of GeneNews Limited (“GeneNews”) (TSX:GEN), announces that, pursuant to a private placement which took place on September 1, 2016 (the “Private Placement”), he, as an individual, personally acquired 2,500,00 units (“Units”) of GeneNews. Each Unit is comprised of one common share (“Common Share”) and one-quarter of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each Warrant will entitle the holder to acquire one common share (a “Warrant Share”) at a price per Warrant Share of CAD $0.50 for a period ending August 15, 2018.
In lieu of making a cash payment by GeneNews, 2,500,000 of the Units issued with the Private Placement were used to make a partial payment of USD $305,344 to the USD $400,000 Demand Note issued by the Company in December 2015 to Rory Riggs, who is a major shareholder and director of the Company. Following the partial payment, the Company’s remaining principal under this December 2015 Demand Note is USD $94,656. The total principal Demand Notes remaining with Mr. Riggs is USD $244,656. Each Unit was valued at $0.16.
Prior to the Private Placement, Mr. Riggs held directly 5,193,191 Common Shares, 325,002 Options of GeneNews (“Options”), and 1,562,500 Warrants, entitling him to acquire an additional 1,887,502 Common Shares. Additionally, Mr. Riggs also held indirectly through a trust account with Robin Riggs 18,500 Common Shares. Thus, Mr. Riggs held approximately 8.26% of the issued and outstanding Common Shares on a non-diluted basis and approximately 10.93% of the issued and outstanding Common Shares if Mr. Riggs converts his Warrants and Options into Common Shares.
As a result of the Private Placement, Mr. Riggs now holds directly 7,693,191 Common Shares, 325,002 Options, and 2,187,500 Warrants, entitling him to acquire an additional 2,512,502 Common Shares. Additionally, Mr. Riggs also holds indirectly through a trust account with Robin Riggs 18,500 Common Shares. Thus, Mr. Riggs now holds approximately 10.63% of the issued and outstanding Common Shares on a non-diluted basis and approximately 13.62% of the issued and outstanding Common Shares if Mr. Riggs converts his Warrants and Options into Common Shares.
Mr. Riggs acquired beneficial ownership, and control or direction, directly or indirectly, of the Common Shares that are the subject of this press release for investment purposes. Mr. Riggs will review his holdings from time to time and he may increase or decrease his position as future circumstances may dictate. Mr. Riggs currently has no present plans to increase or decrease his holdings of securities of GeneNews.GlobeNewswire
Last updated on: 20/09/2016
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