Update on Milost Equity Subscription Agreement (MESA)

TORONTO, Feb. 7, 2018 /CNW/ - GeneNews Limited (TSX:GEN) ("GeneNews" or the "Company") today provided an update on the MESA, announced on November 9 2017 between GeneNews and Milost Global Inc. (Milost).

The MESA, which is legally binding on Milost, anticipates up to US$10 million in financing, comprised of up to US$4 million in equity subscriptions, and up to US$6 million in convertible notes. A first tranche draw of US$500,000 was initiated on November 21, 2017 with an anticipated closing during the month of December. This first tranche has not yet closed.

Based on communications to date, Milost has informed GeneNews that it intends to complete the draw. No definitive closing date has yet been agreed on.

"While we would obviously like this tranche to close and for us to get on with growing the company, we are continuing to raise money via alternative routes and are in discussion with several parties. It is always prudent to have multiple paths should timing on financing not always work to plan", said James Howard-Tripp, Chairman and CEO of GeneNews. "Meanwhile, our discussions with large partners are progressing well and we are working on implementation plans" he added.

About GeneNews

GeneNews, an innovator in the liquid biopsy space, is committed to becoming a leader in advanced diagnostics and personalized medicine, serving as a strong commercialization outlet for early detection of cancer and other chronic diseases. Our mission is to identify, assess and make commercially available a comprehensive menu of diagnostics that provide physicians and patients with personalized clinical intelligence and actionable information to improve health out-comes through the early diagnosis of disease. Our Richmond, Virginia-based Innovative Diagnostic Laboratory clinical reference lab specializes in traditional and advanced clinical evidence-based blood testing that helps find, understand, and address cancer risk in patient populations. Currently, IDL offers risk assessment blood tests for four prevalent cancer types - colon, lung, prostate and breast. GeneNews' common shares trade on the Toronto Stock Exchange under the symbol 'GEN'. More information on GeneNews and IDL can be found at www.GeneNews.com and www.myinnovativelab.com, respectively.

Forward-Looking Statements

This press release contains forward-looking statements identified by words such as "expects", "will" and similar expressions, which reflect the Company's current expectations regarding future events. The forward-looking statements involve risks and uncertainties that could cause the Company's actual events to differ materially from those projected herein, including but not limited to any form of financing. Investors should consult the Company's ongoing quarterly filings and annual reports for additional information on risks and uncertainties relating to these forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements, except as required by law. 

SOURCE GeneNews Limited