GeneNews (TSX:GEN) is undertaking a non-brokered private placement of up to 50 million common shares at a price of 10 cents apiece, or $5-million.
Any remaining unfunded portion of the offering may be raised with the issuance of a senior secured, collateralized convertible debenture. If needed, this convertible debenture would be issued with a term of one year, interest accrued and payable at 15% and with a conversion price of 16 cents a share. The conversion would become mandatory if the common stock trades above 16 cents for 30 consecutive trading days.
The company noted that its existing shareholders can subscribe for any amount of the offering as they choose (subject to a $5,000 minimum individual subscription). The offering is expected to close in several tranches from March 21 through March 29. Also, the securities issued will be subject to a hold period.