Gemoscan Canada, Inc.

Gemoscan Canada, Inc.

November 22, 2010 16:09 ET

Gemoscan Canada, Inc. Announces Non-Brokered Private Placement

TORONTO, ONTARIO--(Marketwire - Nov. 22, 2010) - Gemoscan Canada, Inc. ("Gemoscan" or the "Corporation") (CNSX:GES) announces, subject to regulatory approval, that it plans to issue up to 1,428,571 units (the "Units") of the Corporation in a non-brokered private placement (the "Private Placement") at a price of Cdn.$0.35 per Unit for total gross proceeds of up to Cdn.$500,000. Each Unit consisting of one common share ("Common Share") and one half of one common share purchase warrant (a "Warrant").

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, at any time in the first year following the anniversary of the closing of the Offering and at a price of Cdn.$0.60 per Warrant Share in the second year following the anniversary of the closing of the Offering. (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 two years from the closing of the Private Placement.

Proceeds from the Private Placement will be used to enhance the Corporation's cash on hand and strengthen its working capital position. The securities issued will be subject to a four-month hold period from the date of closing. Gemoscan currently has a total of 17,440,400 common shares outstanding.

In connection with the Private Placement, finder's fees may be payable. The Private Placement and finder's fees are subject to regulatory approval.

Gemoscan is a company listed and trading on the Canadian National Stock Exchange, symbol: GES.

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