Call Genie Inc.
TSX : GNE

Call Genie Inc.

February 14, 2011 08:30 ET

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

TORONTO, ONTARIO--(Marketwire - Feb. 14, 2011) -

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 Wolverton Securities Ltd. ("Wolverton"), to act as agent on a commercially reasonable basis, in connection with a proposed private placement of up to $5 million of secured convertible debentures (the "Debentures"). The Company anticipates closing shortly, subject to the receipt of all necessary regulatory approvals.

The Debenture financing provides 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 four years from the closing. At the option of the Debenture holder, principal under the Debentures will be convertible into common shares of the Company at a conversion price of $0.25 per share. The Company will grant a security interest to Debenture holders under a general security agreement covering all of the assets of the Company.

"We are very pleased to be working again with Wolverton on the securing of 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 solutions provider in mobile local search and mobile digital interactive advertising. Call Genie enables traditional industries to move to new business models that support the connection of mobile consumers and local merchants. Solutions provided include search and advertising serving technology and services that utilize advanced wireless networks as well as the mobile internet to enable a "mobile ecosystem" that encompasses advertisers, service providers (e.g., internet yellow pages, carriers, network broadcasters) and mobile users. Currently, Call Genie solutions are deployed in 14 countries around the world. www.callgenie.com

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

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