Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Genesis Announces IPO And Trans Tasman Listing

AUCKLAND, New Zealand – 22 August 2000 – Leading New Zealand Biotechnology company, Genesis Research and Development Corporation Limited, confirmed today that it is proceeding with a NZ$34.5 million initial public share offer and a listing on both the New Zealand Stock Exchange (NZSE) and the Australian Stock Exchange (ASX).

Genesis will offer 5,750,000 shares at an offer price of NZ$6.00, bringing the company’s market capitalisation to approximately NZ$148 million.

The company has registered an investment statement and prospectus for the offer with the New Zealand Companies Office and has also lodged the document with the Australian Securities and Investments Commission. The offer will be open to both institutional and retail investors in New Zealand and Australia.

Announcing the offer, Genesis Founder and CEO, Dr James Watson said the company was well prepared for an IPO in terms of its world-class validated research, a solid product pipeline, strong collaborations and a history of successfully delivering ‘milestones’.

“We look forward to building on the success we have had with a series of successful placements with institutional investors. Having their endorsement creates an extremely favourable platform for the offer.”

Genesis announced in June that six of New Zealand’s leading investors had subscribed for shares as part of a NZ$13.8 million placement. The institutions included Armstrong Jones, Arcus Investment Management, AXA New Zealand Funds Management, BT Funds Management and Guardian Trust Funds Management.

Genesis can now confirm that Corixa Corporation (NASDAQ: CRXA), on behalf of itself and Genesis, has entered into a conditional agreement with Medicis Pharmaceutical Corporation (NYSE: MRX) in relation to the development, commercialisation and licensing of PVAC, the psoriasis treatment that Genesis is developing jointly with Corixa. If the agreement is approved, Medicis Pharmaceutical Corporation will pay a non-refundable payment of US$17 million, additional potential development milestone payments of US$35 million and commercialisation and cumulative net sales threshold milestone payments of US$55 million. Genesis and Corixa Corporation will share any such payments and any subsequent royalty entitlement on commercial sales on a pro-rata basis, after a minority portion of these payments is paid to Stanford Rook Limited for rights in relation to its Mycobacterium vaccae patents.

The offer will see 1.5 million shares reserved for firm allocation to clients of members of the NZSE and ASX as well as a number of other invited financial intermediaries. In addition, 350,000 shares will be reserved for existing shareholders. There will be no public pool.

Dr Watson said most of the money raised by the offer will be applied to Genesis’ research and development activities. “These include the clinical development of our immune therapies for psoriasis and asthma, expansion into eczema, the development of our forestry genomic platform in a relatively new venture with ArborGen LLC and building new databases and technology to secure a foundation in agriculture and horticulture.”

The offer is being managed by UBS Warburg New Zealand Limited and the organising broker is UBS Warburg New Zealand Equities Limited.

The offer is expected to open on Tuesday, 29 August 2000 and close on Thursday, 14 September 2000. Trading on both the NZSE and the ASX is expected to commence on Friday, 22 September. The offer of Genesis shares is contained in the investment statement and prospectus. Anyone wishing to apply for shares in the offer will need to complete the application form that will accompany the investment statement and prospectus.

About Genesis

Genesis is a biotechnology company based in Auckland, New Zealand, with genomic programmes in human health, forestry and agriculture. Genesis builds EST databases that provide the genomic platform for discovery of novel genes with commercial value and has considerable experience and expertise in high-throughput DNA sequencing, functional genomics and development of therapeutics. Partnerships with biopharmaceutical, agricultural, horticultural and forestry companies have been important for funding research to effectively develop potential products. In addition to the extensive forestry gene technology, Genesis has a psoriasis therapeutic, PVACTM, in FDA-approved Phase II clinical trials in partnership with the US-based Corixa Corporation, and a Phase I clinical trial for an asthma therapeutic has been initiated in Wellington, New Zealand.

Application has been made to the New Zealand Stock Exchange for permission to quote the shares and for the listing of Genesis Research and Development Corporation Limited. All the requirements of the NZSE in respect of such quotation and listing that can be complied with on or before the date of the publication of this announcement have been duly complied with. However, the NZSE accepts no responsibility for any statement in this announcement.

ENDS


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

CO2 And Water: Fonterra's Environment Plans

Federated Farmers support Fonterra’s bold push to get to zero emissions of CO2 on the manufacturing side of the Co-operative, both in New Zealand and across its global network. More>>

ALSO:

Fisheries: Decision To Delay Monitoring ‘Fatally Flawed’

Conservation group representatives say a decision by the new Minister of Fisheries, Stuart Nash, to delay implementation of camera monitoring of fishing efforts in New Zealand is ‘fatally flawed’. More>>

ALSO:

Kaikōura Quakes: One Year On

State Highway One and the railway were blocked by damage and slips and the Inland Road suffered significant damage. Farms, homes and businesses suffered building and land damage. Power and internet went down, drinking water systems, sewage systems and local roads were all badly affected... More>>

ALSO: