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GeneNews Truncates Offering Due to Market Conditions

NEW YORK (GenomeWeb) – GeneNews today said that it is closing its previously announced C$3 million ($2.2 million) offering after raising C$721,000 ($532,000) in gross proceeds.

James Howard-Tripp, chairman and CEO of the Toronto-based diagnostic firm, said in an announcement that it decided to truncate the offering due to current market conditions. At the initiation of the offering, GeneNews shares were trading at about C$.50 per share, but have since seen "considerable pricing pressure. We do not believe it is in the interests of either our shareholders or the company to leave the offering open over the holidays," he said.

He added that the firm will continue on its operational plan, which includes enrolling NueHealth physicians, growing revenues, and building up its roster of healthcare groups using the firm's early cancer diagnostic tests.

GeneNews had sought to raise C$3 million from a brokered private placement of convertible unsecured debentures. Net proceeds from the sale of the debentures will go toward repayment of current debt and payables, and to launch new products, the firm said.

GeneNews raised C$1.6 million in September from a private placement of stock and warrants.