Genoil Raises $1.28 Million From Private Placement
May 4, 2009 (FinancialWire) — Genoil Inc. (OTCBB: GNOLF) (TSX: GNO) has closed the first tranche of a private placement to raise a total of $1.5 million.
With the closing of the first tranche, the company has issued 9,906,213 units at $0.13 per unit, each unit consisting of one common share and one common share purchase warrant, for total gross proceeds of $1,287,808.24.
The warrants are exercisable until two years following their issue date at a price of $0.20. Genoil CEO David K. Lifschultz and director John O’Donnell participated in the placement. The shares and warrants are subject to a four-month hold period.
Genoil said it plans to complete a second tranche of the private placement in order to accommodate additional subscribers.
The shares for debt transaction is meant to satisfy amounts outstanding to certain creditors of the company, according to Genoil. Shares were issued under a debt cancellation agreements between Genoil and each of the creditors, whereby each of the creditors agreed to forgive and cancel debts.
Genoil said it closed out $212,191.74 of debt for 1,367,319 common shares and 564,302 common share purchase warrants.
Canada-based Genoil is an engineering technology development company that develops innovative hydrocarbon, oil and water separation, and marine technologies.
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