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

 

Quake Insurance: Reforms To EQC Act Announced

· Increasing the monetary cap from $100,000 (plus GST) to $150,000 (plus GST) for EQC building cover.
· Clarifying EQC land cover is for natural disaster damage that directly affects the insured residence or access to it... More>>

ALSO:

Reserve Bank: Official Cash Rate Unchanged At 1.75 Percent

Global economic growth has increased and become more broad-based. However, major challenges remain with on-going surplus capacity and extensive political uncertainty... More>>

Kaikōura Earthquake: Private Insurers Receive $1.8b Claims

Insurance Council Chief Executive Tim Grafton said most is for commercial loss at $1.36 billion, with residential claims amounting to over $460 million. “...We have a high level of confidence that most people will have received settlement offers by the end of this year." More>>

ALSO:

Forms And Data: New Proposals To Simplify Personal Income Tax

The Government is proposing to make tax simpler for individuals, with people whose only income is from a salary, wages or investments no longer being required to file tax returns to receive tax refunds or to calculate any additional tax. More>>

OECD: NZ Economic Expansion Faces Long Term Challenges

The OECD Economic Survey of New Zealand discusses the gap between the strong short-term outlook and long-term challenges posed by low productivity growth and a changing labour market. More>>

ALSO:

GDP: