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

 


Genesis Research suspends NZ ops, stock tumbles

Genesis Research suspends NZ operations as funds dry up; stock tumbles

By Jonathan Underhill

May 3 (BusinessWire) - Genesis Research and Development Corp. suspended its New Zealand operations and said it may tip its assets into a new company as funds dry up as the company awaits word on whether a Japanese investor will put in more cash. The shares tumbled be about a third.

A Japanese investment group has invested $500,000 in a joint venture, Solirna Biosciences, which purchased the intellectual property for Genesis’ novel single stranded RNAi technology, known as gene silencing technology. They’ll put in a further $500,000 provided the JV meets certain milestones.

“Further funding of Solirna is being discussed, with future development of the technology likely to be undertaken overseas,” chief executive Stephen Hall said in a statement.

Shares of Genesis slumped by 33% to 4 cents on the NZX today, having fallen from more than $7.50 in early 2001. Accident Compensation Corp. is the biggest shareholder in Genesis, with about 13% of the stock.

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.

The company is also in talks to acquire another business with “several therapeutic development projects, including on close to entering clinical development.” The vendors have indicated that funds are available that would allow Genesis to make a $450,000 placement of shares, with more potentially to follow, Hall said.

Separately, Genesis has offered to accept “a significantly reduced amount” for an outstanding debt from Pure Power Global for its sale of BioJoule Ltd., provided payment is made promptly on the long-standing amount. It said an initial deposit has been made with the balance expected this month.

(BusinessWire)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Revenue Renewal: Tax Modernisation Programme Launched

Revenue Minister Todd McClay today released the first two in a series of public consultations designed to modernise and simplify the tax system. More>>

ALSO:

Scoop Business:
NZ Puts Seven New Oil And Gas Areas Put Up For Tender

A total of seven new areas will be opened up to oil and gas exploration under its block offer tendering system, as the New Zealand government seeks to concentrate activity in a few strategically chosen areas. More>>

ALSO:

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news