Genesis Electronics Group Secures $5 Million Line of Credit
April 22 2010 - 9:00AM
Marketwired
Genesis Electronics Group, Inc. (OTCBB: GEGI), announced that a $5
million equity line of credit is being established through Tangiers
Investors, LP. The funding will be used by Genesis to support the
continued development and production of its high-technology
products and operations.
Genesis has entered into a Securities Purchase Agreement with
Tangiers that gives Genesis the right, but not the obligation, to
draw down on the equity line of credit by selling shares of
Genesis' common stock to Tangiers for a total purchase price of up
to $5 million. Tangiers will pay Genesis 85% of the lowest volume
weighted average price of Genesis' common stock during the pricing
period as quoted by Bloomberg, LP on the Over-the-Counter Bulletin
Board. Tangiers' obligation to purchase shares of the Company's
common stock under the Securities Purchase Agreement is subject to
certain conditions, including Genesis obtaining an effective
registration statement for shares of the Company's common stock
sold under the Securities Purchase Agreement and is limited to
$100,000 per 10 consecutive trading days after the advance notice
is provided to Tangiers.
Upon signing the Securities Purchase Agreement, Tangiers has
agreed to accept 3,000,000 restricted shares of Genesis stock in
lieu of Tangiers normal cash commitment fee.
Raymond Purdon, Chairman of the Board of Directors, said, "This
funding is an extremely positive milestone for our company. This
transaction will allow us not only to roll out the first line of
products, but also look for additional avenues to unlock
shareholder value. We are pleased to receive this vote of
confidence from Tangiers."
Edward Dillon, CEO, added, "The costs associated with moving
from a developmental and prototype stage to actual production and
distribution for the consumer market will be much more easily met
through our favorable relationship with Tangiers. We are in a far
stronger financial position to execute our business plans in a
timely manner."
For additional information about Genesis Electronics Group,
Inc., visit the company's website at
www.genesiselectronicsgroup.com .
Forward Looking Statements
Except for historical matters, matters discussed in this release
are forward-looking and are made pursuant to the safe harbor
provisions of the 1995 Private Securities Litigation Reform Act.
Investors are cautioned that these statements reflect numerous
assumptions and involve risks and uncertainties that may affect
Genesis Electronics Group, Inc., its business and prospects, and
cause actual results to differ materially from these statements.
Among these factors are Genesis Electronics Group, Inc.'s
operations; competition; entry barriers; relationship reliance;
technological changes; product demand; new systems introduction;
vendors pricing; supply of software.
In light of risks and uncertainties in these forward-looking
statements, they should not be regarded as a representation by
Genesis Electronics Group, Inc. or any other person that the
projected results, objectives or plans will be achieved. Genesis
Electronics Group, Inc. undertakes no obligation to revise or
update these statements to reflect events or circumstances after
the date hereof.
CONTACT: Ed Dillon, CEO Genesis Electronics Group, Inc. (954)
272-1200
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