TORONTO, March 9, 2017 /CNW/ - GeneNews Limited (TSX:GEN)
("GeneNews" or the "Company") announced today that its subsidiary, GeneNews (USA), Inc., has
reached a settlement agreement (the "Agreement") with the HDL Liquidating Trust (the "Liquidating Trust") to resolve its
outstanding $US 2,000,000 Secured Demand Promissory Note (the "Note") from the Company's previously
announced acquisitions of the full ownership of Innovative Diagnostic Laboratory, LLP ("IDL").
On May 19, 2015, GeneNews announced that it had increased its ownership stake in IDL to 50% by
issuing a one-year secured demand promissory note in the principal amount of US$ 1,000,000. On
March 4, 2016, the Company concluded a second purchasing agreement, in which it acquired the
remaining ownership interest in IDL, assuming the liability of former partner, Cobalt Healthcare Consultants, Inc.'s US$ 1,000,000 secured demand promissory note.
Under terms of the Agreement, which represents a compromise of disputed claims for both parties, GeneNews (USA) Inc., will pay the Trust an aggregate settlement amount of $2,095,843, to
be paid in a $25,000 upfront payment, a $15,000 payment on a monthly
basis from March 1, 2017 to July 1, 2017, followed by monthly
payments of $10,000 until the outstanding debt has been paid in full. The Agreement will be
submitted to the bankruptcy court for review and is expected to be approved before the end of March
2017.
"We are pleased to come to terms on this outstanding debt, which represents an equitable agreement for both parties and helps
provide GeneNews with the financial flexibility to continue to execute against its business plan," commented GeneNews Chairman
and CEO, James Howard-Tripp.
About GeneNews
GeneNews is committed to becoming a leader in advanced diagnostics and personalized medicine, serving as a strong
commercialization outlet for early detection of cancer and other chronic diseases. Our mission is to identify, assess and make
commercially available a comprehensive menu of diagnostics that provide physicians and patients with personalized clinical
intelligence and actionable information to improve health out-comes through the early diagnosis of disease. Our
Richmond, Virginia-based Innovative Diagnostic Laboratory clinical reference lab specializes in
traditional and advanced clinical evidence-based blood testing that helps find, understand, and address cancer risk in patient
populations. Currently, IDL offers risk assessment blood tests for the three most prevalent cancer types - colon, lung and
prostate. GeneNews' common shares trade on the Toronto Stock Exchange under the symbol 'GEN'. More information on
GeneNews can be found at www.GeneNews.com.
Forward-Looking Statements
This press release contains forward-looking statements identified by words such as "expects", "will" and similar expressions,
which reflect the Company's current expectations regarding future events. The forward-looking statements involve risks and
uncertainties that could cause the Company's actual events to differ materially from those projected herein. Investors should
consult the Company's ongoing quarterly filings and annual reports for additional information on risks and uncertainties relating
to these forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. The Company
disclaims any obligation to update these forward-looking statements, except as required by law.
SOURCE GeneNews Limited
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