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.
Hollywood, Florida (PRWEB) April 26, 2010
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 Investors, LP 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.
"This funding is an extremely positive milestone for our company," said Raymond Purdon, Genesis Chairman of the Board of Directors. "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."
Genesis CEO Edward Dillon 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 http://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