Call Genie Inc.

Call Genie Inc.

July 06, 2009 08:00 ET

Call Genie Inc. Closes $2,500,000 Convertible Debenture Financing With a $0.50 Conversion Privilege

TORONTO, ONTARIO--(Marketwire - July 6, 2009) - Call Genie Inc. (TSX:GNE) announced today that it has closed its previously announced convertible debenture.

The Company had announced on May 11, 2009 the purchase by a single third party investor of 1,500 Convertible Debentures at a price of $1,000 per debenture. The Company reserved the right at that point to place additional debentures with other accredited investors.

The Company closed on its offering of Convertible Debentures for aggregate principal of approximately $2,500,000. Management purchased approximately 13% of the debentures. The principal amount of the debentures will bear interest at a rate of 10% per annum, payable semi-annually, and mature on May 30, 2012. Principal and accrued interest under the debentures will be convertible into common shares of the Company based on a conversion price of $0.50 per share.

Further, the debenture holders will receive 240 common share purchase warrants per debenture. Each warrant will entitle the holder to purchase one common share of the Company, at an exercise price of $0.225 (subject to anti-dilution protection), at any time and from time to time until the date that is two years following the date of issue of the warrants.

The proceeds of the private placement will be used for working capital and general corporate purposes and to establish a 10% reserve for future interest obligations under the debentures.

About Call Genie Inc.

Call Genie is a leading international 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, and the 118 Tracker Award for both Technology Innovation in the UK and most recently, Outstanding Contribution to the Industry.

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

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