Call Genie Inc.
TSX : GNE

Call Genie Inc.

November 02, 2009 08:30 ET

Call Genie Inc. Announces Engagement of Dundee Securities Corporation as Agent in Connection With $5,000,000 Convertible Debenture Financing

TORONTO, ONTARIO--(Marketwire - Nov. 2, 2009) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN

Call Genie Inc. (TSX:GNE) today announced that it has engaged Dundee Securities Corporation ("Dundee"), as agent, in connection with a proposed offering of up to $5 million of convertible secured debentures. The Company anticipates closing on the first tranche of $2,500,000 aggregate principal amount of debentures shortly, subject to the receipt of all necessary regulatory approvals.

The term sheets entered into with proposed purchasers of debentures and Dundee provide that the principal amount of the debentures will bear interest at a rate of 12% per annum, payable semi-annually, and that the debentures will mature on October 31, 2012. At the option of the Debenture Holder, principal and accrued interest under the debentures will be convertible into common shares of the Company at a conversion price of $0.50 per share. Those terms sheets also contemplate that the Company will grant a security interest to Debenture Holders under a general security agreement covering all of the assets of the Company.

In addition, each Debenture Holder will receive 480 warrants per $1,000 principal amount of debentures. Each warrant will entitle the holder to purchase one common share of the Company, at an exercise price of $0.225, at any time and from time to time until the date that is two years following the date of issue of the warrants.

"We are very pleased to be working with Dundee in our efforts to secure additional financing for the Company," noted Michael Durance, CEO of Call Genie Inc. "Proceeds from the financing will be used, among other things, to support the Company's growing number of customer relationships and projects."

The debentures have not been, and will not be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from registration requirements. This News Release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

About Call Genie Inc.

Call Genie is a leading global provider of local mobile search and advertising solutions that connect ready to transact consumers directly with local merchants for local directory businesses, directory assistance services and local media publishers. Call Genie solutions offer an exceptional experience for both advertisers and consumers and are deployed in 11 countries around the world. Call Genie has been awarded the Excellence in Integrated Ad Management award by the Pelorus Group, has won the Yellow Page Association Industry Excellence Award for Marketing Innovation, the Whitaker Innovation Award, the 118 Tracker Award for both Technology Innovation in the UK and most recently, Outstanding Contribution to the Industry. www.callgenie.com.

The TSX Exchange has neither approved nor disapproved the contents of this news release.

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