GENEX <GNEX.O> PLANS PREFERRED RIGHTS OFFERING
Genex Corp said it has filed
for a proposed 8,500,000 dlr rights offering that is planned
for early summer.
    It said shareholders will have the right to buy 1.1
convertible preferred shares at 60 cts a share for each common
share held as of May Eight.
    It said lenders who extended a four mln dlr secured credit
line to Genex in early March will have the right to buy all
unsubscribed shares, and based on an agreement with Genex's
largest shareholders, the lenders will be able to buy at least
34 pct of the offering.
    The company said to make the offering, it will ask
shareholder approval for an increase in authorized common
shares to 50 mln from 21 mln and for the authorization of a new
class of 20 mln preferred shares.  It said it will also ask
approval for a change in state of incorporation to Delaware to
take advantage of more flexible corporation laws and new
provisions regarding director liability.
    Genex said the new preferred will have the right to elect a
majority of its board and will be convertible into common
stock.  If the rights offer were sold out and all shares
converted, common shares outstanding would more than double.
    The company is now incorporated in Maryland.
    Genex said it will use proceeds of the rights offering to
repay its credit line and for working capital.
 Reuter
