Gemoscan Canada, Inc.

Gemoscan Canada, Inc.

January 25, 2011 16:56 ET

Gemoscan Canada, Inc. Announces Closing of Private Placement

TORONTO, ONTARIO--(Marketwire - Jan. 25, 2011) - Gemoscan Canada, Inc. ("Gemoscan" or the "Corporation") (CNSX:GES) (MUN:1GE) is pleased to announce that, in compliance with CNSX policies, the closing of its previously disclosed non-brokered private placement is scheduled for January 27, 2011 for gross proceeds of Cdn.$218,700.00 (the "Offering"). Under the Offering, the Corporation issued 624,857 units (the "Units") at Cdn.$0.35 per Unit. Each Unit consisted of one common share and one half of one common share purchase warrant (the "Warrants"). Each whole Warrant will entitle the holder to purchase one common share of the Corporation (the "Warrant Share") at a price of Cdn.$0.50 per Warrant Share, from January 27, 2011 to January 27, 2012 and at a price of Cdn.$0.60 per Warrant Share from January 28, 2012 to January 27, 2013 per common share. (the "Exercise Price"); provided that if at any time the trading price of the Corporation's common shares on a stock exchange closes at or above Cdn.$0.50 for at least 20 consecutive trading days, the Corporation shall be entitled to notify the holder in writing of its intention to accelerate the expiry date of the Warrants, in which case, the holder shall have 30 days from the delivery of such written notice to exercise the Warrants at their then current Exercise Price. All Warrants will expire no later than January 27, 2013.

Proceeds from the Private Placement will be used to enhance the Corporation's cash position and strengthen its working capital. The securities issued will be subject to a four-month hold period from the date of closing. Post closing, Gemoscan has a total of 18,065,257 common shares outstanding.

The Corporation paid finder's fees of Cdn.$5,145.00 in connection with the Offering.

Neither the CNSX nor its regulation services provider accepts responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Gemoscan Canada, Inc.
    Brian Kalish
    Director, President and Chief Executive Officer
    (416) 650-1200