Genesis Research in talks with new investor, raises $446,278 in placement

Tuesday 15th June 2010

Genesis Research, which suspended its New Zealand operations last month after running out of cash, said it has raised $446,278 in a placement and is in talks with a new investor about future research and development.

The biotechnology company sold 7.4 million shares at 6 cents apiece, the same price as its last capital raising in March, it said in a statement today. The placement would be completed in the next two weeks.

Genesis key gene silencing technology is owned by Solirna Biosciences, a joint venture with a Japanese investment group that put up $500,000 and promised a further such sum if certain milestones were met. Today, Genesis said it was continuing talks with a number of groups about investing in Solirna.

Other assets, namely its Real Time Genomics and certain royalty rights, will remain with Genesis “until value can be realised for shareholders,” it said.

Among other proposals put to genesis were ones that didn’t involve a continued presence in New Zealand, which the company said lacked comparative benefits to current shareholders. Genesis said it will update shareholders at their annual meeting on June 30.

Shares of Genesis, which was founded in 1994, last traded at 3.1 cents on May 18 and have slumped 74% in the past 12 months. They traded at more than $7.50 in early 2001.

The gene silencing research aims to deliver disease-curing payloads into human cells. It was turned down for additional funding from the Foundation for Research, Science and Technology.

Genesis said it is looking to transfer its royalty rights and equity interests in Solirna and Real Time Genomics into a separate entity, issuing shares to Genesis shareholders, who would also continue to hold existing stock.

Businesswire.co.nz

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